In CCAR, our qualitative assessment of a firm’s capital planning is integrated with the quantitative results of both the supervisory and company-run stress tests. The Federal Reserve continues to increase the transparency of our stress testing process, the results of the exercises, and our assessments of banks’ capital planning.
The original SCAP set a new standard of supervisory transparency in disclosing bank-by-bank estimates of stress losses by type of exposure. This departure from the traditionally confidential treatment of supervisory information, as I noted earlier, was intended to restore public confidence by providing much-needed information about banks’ potential losses and capital needs.