📘 Question
Your team has confirmed that Eastern Capital Bank’s stress testing model underestimates macroeconomic stress compared to regulatory benchmarks. Besides fixing the model inputs, the CFO is interested in hearing what types of internal process improvements could strengthen the bank’s capital planning process.
What are some practical ways the bank could improve its capital planning process to better prepare for CCAR reviews?
📊 Case Exhibit
Your answer:
Your team has confirmed that Eastern Capital Bank’s stress testing model underestimates macroeconomic stress compared to regulatory benchmarks. Besides fixing the model inputs, the CFO is interested in hearing what types of internal process improvements could strengthen the bank’s capital planning process.
What are some practical ways the bank could improve its capital planning process to better prepare for CCAR reviews?
📊 Case Exhibit
