(a) Stress test requirement.
(1) In general. A covered company must conduct a stress test as required under this
subpart.
(2) Frequency.
(i) General. Except as provided in paragraph
(a)(2)(ii) of this section, a covered company must conduct a stress
test according to the frequency in Table 1 of section 238.143(a)(2)(i).
Table 1 of section
238.143(a)(2)(i)
| If the covered company
is a |
Then the stress test must be conducted |
| Category
II savings and loan holding company |
Annually, by April 5 of
each calendar year based on data as of December 31 of the preceding
calendar year, unless the time or the as-of date is extended by the
Board in writing. |
| Category
III savings and loan holding company |
Biennially, by April 5
of each calendar year ending in an even number, based on data as of
December 31 of the preceding calendar year, unless the time or the
as-of date is extended by the Board in writing. |
Savings and loan holding company that
is not:
(A) A Category II savings and loan holding
company; or
(B) A Category III savings and loan
holding company. |
Periodically,
as determined by rule or order. |
(ii) Change in frequency. The Board may require
a covered company to conduct a stress test on a more or less frequent
basis than would be required under paragraphs (a)(2)(i) of this section
based on the company’s financial condition, size, complexity,
risk profile, scope of operations, or activities, or risks to the
U.S. economy.
(3) Notice and
response.
(i) Notification
of change in frequency. If the Board requires a covered company
to change the frequency of the stress test under paragraph (a)(2)(ii)
of this section, the Board will notify the company in writing and
provide a discussion of the basis for its determination.
(ii) Request for reconsideration and Board response. Within 14 calendar days of receipt of a notification under this
paragraph (a)(3), a covered company may request in writing that the
Board reconsider the requirement to conduct a stress test on a more
or less frequent basis than would be required under paragraph (a)(2)(i)
of this section. A covered company’s request for reconsideration
must include an explanation as to why the request for reconsideration
should be granted. The Board will respond in writing within 14 calendar
days of receipt of the company’s request.
(b) Scenarios provided
by the Board.
(1) In general. In conducting a stress test under this section, a covered company
must, at a minimum, use the scenarios provided by the Board. Except
as provided in paragraphs (b)(2) and (3) of this section, the Board
will provide a description of the scenarios to each covered company
no later than February 15 of the calendar year in which the stress
test is performed pursuant to this section.
(2) Additional
components.
(i) The Board may require a covered
company with significant trading activity, as determined by the Board
and specified in the Capital Assessments and Stress Testing report
(FR Y-14), to include a trading and counterparty component in its
severely adverse scenario in the stress test required by this section.
The data used in this component must be as-of a date selected by the
Board between October 1 of the previous calendar year and March 1
of the calendar year in which the stress test is performed pursuant
to this section, and the Board will communicate the as-of date and
a description of the component to the company no later than March
1 of the calendar year in which the stress test is performed pursuant
to this section.
(ii) The Board may require a covered company to include one or more
additional components in its severely adverse scenario in the stress
test required by this section based on the company’s financial
condition, size, complexity, risk profile, scope of operations, or
activities, or risks to the U.S. economy.
(3) Additional scenarios. The Board may require a covered company to use
one or more additional scenarios in the stress test required by this
section based on the company’s financial condition, size, complexity,
risk profile, scope of operations, or activities, or risks to the
U.S. economy.
(4) Notice and response.
(i) Notification of additional component. If
the Board requires a covered company to include one or more additional
components in its severely adverse scenario under paragraph (b)(2)
of this section or to use one or more additional scenarios under paragraph
(b)(3) of this section, the Board will notify the company in writing
and include a discussion of the basis for its determination. The Board
will provide such notification no later than December 31 of the preceding
calendar year. The notification will include a general description
of the additional component(s) or additional scenario(s) and the basis
for requiring the company to include the additional component(s) or
additional scenario(s).
(ii) Request for reconsideration and Board
response. Within 14 calendar days of receipt of a notification
under this paragraph, the covered company may request in writing that
the Board reconsider the requirement that the company include the
additional component(s) or additional scenario(s), including an explanation
as to why the request for reconsideration should be granted. The Board
will respond in writing within 14 calendar days of receipt of the
company’s request.
(iii) Description
of component. The Board will provide the covered company with
a description of any additional component(s) or additional scenario(s)
by March 1 of the calendar year in which the stress test is performed
pursuant to this section.
