OCC Proposes New Rules For Annual Stress Tests

On July 17, 2014, the Office of the Comptroller of the Currency ("OCC") proposed new rules aimed at adjusting the timing of the annual stress testing cycle and clarifying the method used to calculate regulatory capital in the stress tests. The proposal shifts the dates of the annual stress testing cycle by approximately three months. For example, a stress testing cycle that, under the current rule, begins on October 1, 2015, would instead begin on January 1, 2016. In addition, the proposal would provide that no covered institution would be required to use the advanced approaches capital methodology in its stress testing projections until the stress testing cycle scheduled to begin on January 1, 2016.