Instead, they became a recurring, ongoing process intended to maintain confidence in major institutions. Second, stress tests were no longer a discretionary exercise by supervisors—under Dodd-Frank, they became the law of the land.
And third, when they were integrated into CCAR, stress tests became part of a comprehensive—it’s the first C in CCAR—framework for capital planning that more closely connected capital regulation to risk management of banks and overall supervision. These were changes, but with the effect of reinforcing the founding principles of the SCAP test.