According to the FRB, the paper "is intended to promote better capital planning at bank holding companies generally, and to provide greater clarity on the standards against which those practices are evaluated as part of the CCAR exercise."
The FRB identified several areas where the bank holding companies needed to improve on their capital planning processes, including:
- accounting for risks most relevant to the specific business activities,
- their methods of projecting the effect of certain stresses on their capital needs, and
- their governance of the capital planning processes.
Read the full report.
The ABIA has an ABIA-member Task Force that works on issues impacting Bank Holding Companies. If you would like to learn more about this Task Force, please contact us.