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NR 2013-171
Contact: Bryan Hubbard
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OCC Releases Dodd-Frank Stress Testing Scenarios for 2014 and the Final Policy Statement for Developing the Annual Stress Test Scenarios

WASHINGTON – The Office of the Comptroller of the Currency (OCC) released the economic and financial market scenarios that will be used in the next round of stress tests for large financial institutions.  The scenarios include baseline, adverse, and severely adverse scenarios, as described in the OCC’s final rules that implement stress test requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  

Concurrently, the OCC also issued the final “Policy Statement on the Principles for Development and Distribution of Annual Stress Test Scenarios.”  The guidance outlines the consultative processes that the OCC will use to gather information on material vulnerabilities or salient risks and to coordinate with the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation to develop the scenarios each year.

Section 165(i)(2) of the Dodd-Frank Act requires certain financial companies, including national banks and federal savings associations with total consolidated assets of more than $10 billion, to conduct annual stress tests.  On October 9, 2012, the OCC published its final annual stress test rule, which sets out definitions and rules for scope of application, scenarios, reporting, and disclosure.  The rule also states that the OCC will provide the required scenarios to the covered institutions by November 15 of each year. The 2014 scenario information can be found on the OCC Web site.  The final guidance was issued on October 28, 2013, in the Federal Register.

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