Analysis conducted by the Board.

CFR · 2024-01-01 · US · Title 12

(a) (2) The analysis will include an assessment of the projected losses, net income, and pro forma capital levels and regulatory capital ratios and other capital ratios for the covered company and use such analytical techniques that the Board determines are appropriate to identify, measure, and monitor risks of the covered company that may affect the financial stability of the United States. (3) In conducting the analysis, the Board will not incorporate changes to a firm's business plan that are likely to have a material impact on the covered company's capital adequacy and funding profile in its projections of losses, net income, pro forma capital levels, and capital ratios. (b) (c) In conducting a stress test under this section, the Board will make the following assumptions regarding a covered company's capital actions over the planning horizon: (1) The covered company will not pay any dividends on any instruments that qualify as common equity tier 1 capital; (2) The covered company will make payments on instruments that qualify as additional tier 1 capital or tier 2 capital equal to the stated dividend, interest, or principal due on such instrument; (3) The covered company will not make a redemption or repurchase of any capital instrument that is eligible (4) The covered company will not make any issuances of common stock or preferred stock. (d) (2) (ii) A Category IV bank holding company or Category IV U.S. intermediate holding company may elect to have the Board conduct a

official document · source cfr-2024 · id 12:§ 252.44