Resubmissions and Feedback

The Federal Reserve may require a capital plan resubmission in future quarters if a BHC exhibits a material decline in performance or if a deteriorating outlook materially increases BHC-specific risks.¹⁸ As detailed in the capital plan rule, a BHC must update and resubmit its capital plan if it determines there has been or will be a material change in the BHC's risk profile (including a material change in its business strategy or any material risk exposures), financial condition, or corporate structure since the BHC adopted the capital plan.¹⁹ Further, the Federal Reserve may direct a BHC to revise and resubmit its capital plan for a number of reasons, including if a stress scenario developed by a BHC is not appropriate to its business model and portfolios or if changes in financial markets or the macroeconomic outlook that could have a material impact on a BHC's risk profile and financial condition require the use of updated scenarios.²⁰

Following the conclusion of CCAR, all 18 BHCs will receive detailed assessments of their capital plans and internal capital assessment processes, including feedback on areas where the plans and processes need to be strengthened. This feedback will cover the major elements of the 2013 capital plans. These assessments will form the basis of the Federal Reserve's supervisory expectation that BHCs continue to strengthen their capital planning processes.

References

 

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