Capital Adequacy (CCAR) and Stress Testing (DFAST)

This course will provide an overview of the importance of capital adequacy, capital planning, and stress testing. The recent financial crisis highlighted the need for significant reform in the way that financial institutions were regulated, both domestically and internationally. This course will review the current framework for measuring capital adequacy and stress testing at the largest and most complex financial institutions.

Course Objectives

By the end of the course, the participants will be able to:

• Understand the importance of capital adequacy to regulated financial institutions subject to Basel risk-based capital standards, Dodd-Frank stress testing (DFAST) standards, and Comprehensive Capital Analysis and Review (CCAR) requirements to ensure institutional and systemic safety and soundness.
• Assess the effectiveness of existing capital planning processes and identify opportunities to better align these processes with regulatory requirements and best practices.
• Identify the similarities and critical differences between capital adequacy, CCAR capital planning, and DFAST stress testing requirements.
• Understand the data requirements and extract/transform/load processes from core systems to the required reporting output of CCAR

Suggested Prerequisites: None

Program Level: Foundational

Advance Preparation: None

Computers and Financial Calculators: Calculators

Recommended CPE Credits:7