CCAR - COMPREHENSIVE CAPITAL ANALYSIS AND REVIEW
Definition
The U.S. Federal Reserve (Fed) introduced a regulatory framework
to promote a safer and more stable financial system in the
aftermath of the financial crisis of 2008. The Fed assesses whether
large banks and financial institutions, referred to as Bank Holding
Companies (BHC), have enough capital to absorb losses during
stressful conditions, as well as whether they have an effective
capital planning process. The Fed has set up an annual
Comprehensive Capital Analysis and Review (CCAR) framework to
perform the assessment of BHCs' capital adequacy and capital
planning.
Capital adequacy, capital planning and capital distribution
arrangements are evaluated within the CCAR.
