1  Board of Governors of the Federal Reserve System (2011), “Federal Reserve Board Issues Final Rule on Annual Capital Plans, Launches 2012 Review”, press release, November 22, www.federalreserve.gov/ newsevents/press/bcreg/20111122a.htm. 2  BIS central bankers’ speeches  A stress test is a critical part of the annual capital review.
But, as these different purposes indicate, the capital review is about more than using a stress test to determine whether a firm’s capital distribution plans are consistent with remaining a viable financial intermediary even in an adverse scenario.