Board of Governors of the Federal Reserve System

The Federal Reserve Board announced on Friday that it will not object to the capital plan resubmitted by Capital One Financial Corporation, as a result of progress in addressing deficiencies in last year's Comprehensive Capital Analysis and Review (CCAR).

Last June, the Board required Capital One to resubmit its capital plan to address deficiencies in its capital planning processes. Those deficiencies included weaknesses in the way the firm shared key capital planning information with its board of directors and senior managers, identified and incorporated its unique and material risks into its capital planning, and forecasted losses and balances under stressful scenarios. The Board will continue to review and assess Capital One's progress in addressing those deficiencies in this year's CCAR submission.

CCAR evaluates the capital planning processes and capital adequacy of the largest U.S. bank holding companies, and large U.S. operations of foreign firms, using the firms' planned capital actions such as dividend payments and share buybacks and issuances. Strong capital levels act as a cushion to absorb losses and help ensure that banking organizations have the ability to lend to households and businesses even in times of stress.

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