In the first place, of course, the requirement for stress testing has become statutory, as Congress drew on the lessons of SCAP in crafting prudential standards for large financial firms in the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).1 Second, the annual supervisory stress test has been incorporated into CCAR, a broader program that requires large banking organizations to submit a capital plan annually.
Furthermore, the results of the November TANKAN indicated that the excessive production capacity and employment perceived by surveyed firms have gradually fallen to the same level as in 1987, at which time the economy was recovering from the recession caused by the appreciation of the yen.