📘 Question
Our client, Eastern Capital Bank, is a mid-sized U.S. commercial bank with $75 billion in total assets. Recently, the Federal Reserve updated its CCAR (Comprehensive Capital Analysis and Review) requirements for banks over $50 billion in assets. CCAR is a regulatory framework that tests how banks would perform under severe economic stress — for example, during a financial crisis.
Eastern Capital Bank’s CFO has asked EY FSO to help identify any weaknesses in their current capital planning process that could put them at risk of failing future CCAR tests. Before reviewing specific processes or numbers, how would you structure the problem to identify potential gaps in their capital planning and stress testing process?
📊 Case Exhibit
Your answer:
Our client, Eastern Capital Bank, is a mid-sized U.S. commercial bank with $75 billion in total assets. Recently, the Federal Reserve updated its CCAR (Comprehensive Capital Analysis and Review) requirements for banks over $50 billion in assets. CCAR is a regulatory framework that tests how banks would perform under severe economic stress — for example, during a financial crisis.
Eastern Capital Bank’s CFO has asked EY FSO to help identify any weaknesses in their current capital planning process that could put them at risk of failing future CCAR tests. Before reviewing specific processes or numbers, how would you structure the problem to identify potential gaps in their capital planning and stress testing process?
📊 Case Exhibit