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Press Release
June 12, 2014

Federal Reserve Board invites comment on
proposal to modify regulations for capital
planning and stress testing
For immediate release
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The Federal Reserve Board on Thursday invited comment on a proposal
to modify the regulations for capital planning and stress testing.
The proposed rule would shift the start date of the capital plan and
stress test cycles from October 1 of a calendar year to January 1 of the
following calendar year. Under the proposed rule, a bank holding
company with total consolidated assets of $50 billion or more would be
required to submit its capital plan and stress test results to the Federal
Reserve by April 5, three months later than under the current
rulemakings.
A bank holding company with total consolidated assets of more than $10
billion and less than $50 billion would be required to submit its stress
test results to the Federal Reserve by July 31. Savings and loan holding
companies and state member banks who are subject to the stress tests
under the Dodd-Frank Wall Street Reform and Consumer Protection Act
also would be required to submit their results several months later than
under the current rules. Although the dates would be shifted forward, the
Federal Reserve would apply the same capital planning and stress
testing processes during a 15-month transition period until the new
schedule takes effect.
The proposed rule would make the new schedule effective beginning

with the 2015-2016 capital plan and stress test cycles. For the upcoming
2014-2015 capital plan cycle, the schedule would be unchanged from
prior years. A large bank holding company would submit a capital plan
on January 5, 2015, and the Federal Reserve would issue an objection
or non-objection to a capital plan by March 31, 2015.
The proposed rule includes a number of further measures to alter the
capital planning and stress test processes. It would:
modify the capital plan rule to limit a large BHC's ability to make
capital distributions to the extent that its actual capital issuances
were less than the amount indicated in its capital plan;
clarify the application of the capital plan rule to a large BHC that is
a subsidiary of a U.S. intermediate holding company of a foreign
banking organization; and
make other technical, clarifying changes, such as adding a
definition of "BHC stress scenario" to the capital plan rule;
permitting, rather than requiring, resubmission of a capital plan
following the Federal Reserve's objection; and eliminating prior
approval requirements for certain capital actions.
Comments on the proposed rule will be accepted until August 11, 2014.
For media inquiries, call 202-452-2955
Federal Register notice: HTML | PDF
Comments on this proposal: Submit

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Last Update: June 12, 2014

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