CCAR
BankingDefinition
Comprehensive Capital Analysis and Review. Annual stress test the Federal Reserve runs on the largest US banks. Determines whether each can pay dividends and buybacks under the Fed's "severely adverse" economic scenario.
Failures (2014: Citi; 2020: many banks paused buybacks) become market-moving. The stress test scenarios get more severe in expansions and looser in recessions — counter-intuitively, often released right as cycles turn.
Failures (2014: Citi; 2020: many banks paused buybacks) become market-moving. The stress test scenarios get more severe in expansions and looser in recessions — counter-intuitively, often released right as cycles turn.