What is Comprehensive Capital Analysis and Review?
Comprehensive Capital Analysis and Review (CCAR) is a US Federal Reserve stress test. It’s a safety measure that assesses whether financial institutions can withstand an economic crisis.
Where have you heard about Comprehensive Capital Analysis and Review?
Following the 2008 global financial crisis, the Obama administration introduced the biggest changes to financial regulation in the US since the Great Depression of the 1930s.
The US Federal Reserve enforces this legislation, aiming to increase transparency and decrease risks in the financial system.
What you need to know about Comprehensive Capital Analysis and Review.
The annual Comprehensive Capital Analysis and Review is designed to assess, regulate, and supervise large banks and financial institutions. It checks that they have enough capital, are stable and that plans to distribute capital, such as dividends, are practical.
It works alongside Dodd-Frank Act supervisory stress testing, which was introduced as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act 2010.
Related Terms
Stress Test
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Great Depression
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Federal Reserve
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