For launch
WASHINGTON โ The Federal Deposit Insurance Corporation (FDIC) today released hypothetical economic scenarios for use in upcoming stress tests for covered institutions with total consolidated assets of more than $250 billion.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires certain financial companies, including certain non-member state banks and state savings associations, to conduct stress tests. In 2018, Congress increased the size of what is considered a covered institution from $10 billion to $250 billion.
Monitoring scenarios include base scenarios and severely adverse scenarios. The base case is in line with a survey of private sector economic forecasters. The severely adverse scenario is not a forecast, but rather a hypothetical scenario designed to assess the strength and resilience of financial institutions. Each scenario includes 28 variables (such as gross domestic product, unemployment rate, stock market prices, and interest rates) covering domestic and international economic activity.
The FDIC coordinated with the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency in the development and distribution of these scenarios.
FDIC: PR-8-2024
