Agencies Release 2017 Dodd-Frank Stress Test Scenarios

February 10, 2017

This month, the OCC and FDIC released their 2017 Dodd-Frank Act Stress Test Scenarios. The agencies released economic and financial market scenarios to be used in upcoming stress tests for covered institutions with more than $10 billion in assets. The supervisory scenarios include baseline, adverse, and severely adverse scenarios.  They also include key variables reflecting economic activity, such as unemployment, exchange rates, prices, income, interest rates, and other salient aspects of the economy and financial markets. Section 165(i)(2) of the Dodd-Frank Act requires financial companies, including national banks and federal savings associations with total consolidated assets of more than $10 billion, to conduct annual stress tests.  The FDIC, OCC, and Board of Governors of the Federal Reserve System coordinate to develop and distribute these tests.