The Federal Reserve on Friday released the scenarios that will guide the 2017 stress test – widely known as CCAR – that has become the binding capital constraint for virtually all large U.S. bank holding companies (BHCs).  Under the new standards, portfolio mortgages will bear still higher CCAR costs, although securitization is catching a bit of a break.  Because FHFA has also used CCAR to stress test the GSEs, the standards also have political impact for the GSEs even though any material changes in actual capital will never occur until the Treasury sweeps come to an end one way or another.

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