These institutions have increased common equity by more than $ billion, mostly through issuance of new shares, conversions of preferred to common stock, and sales of businesses and assets. The immediate effect of the completion of the assessment phase of SCAP was to provide important information about the condition of the 19 institutions at a time of substantial stress and uncertainty in financial markets.
The SCAP clearly helped to restore public confidence in the banking system. Through its demonstration of the importance of individual assessments of firms' capital needs, improved management information systems in complex firms, and horizontal reviews of large institutions, SCAP will also have longer-lasting effects on the supervision of large institutions.