October 2017 Letter - (PDF)
Description: The annual FFIEC 016 collects quantitative projections of balance sheet assets and liabilities, income, losses, and capital across three scenarios (baseline, adverse, and severely adverse) and qualitative information on methodologies used to develop these internal projections. The FFIEC 016 comprises two primary schedules: (1) Results Schedule, which includes the quantitative results of the stress tests under the baseline, adverse, and severely adverse scenarios for each quarter of the planning horizon - that is, aggregate losses, pre-provision net revenue, provision for loan and lease losses, net income, and pro forma capital ratios (including regulatory and any other capital ratios specified); and (2) Scenario Variables Schedule, which must be completed by a banking organization that chooses to use additional economic and financial variables beyond the scenarios provided by the agencies to develop its internal projections.
Agency OMB Numbers:
Purpose: This information collection is required under Section 165(i)(2) of the Dodd-Frank Act and each agency’s implementing regulation for depository institutions and holding companies with total consolidated assets of at least $10 billion, but less than $50 billion. The information is used to form supervisory assessments of how effectively these banking organizations internally plan for their capital needs, identify risk, and measure and assess their own capital adequacy. Data collected provide the agencies with the additional information and perspective needed to help assess how these banking organizations manage their capital relative to the unique nuances of each banking organization’s risk profile. Information gathered in this data collection is also used in connection with the agencies’ supervision and regulation of these banking organizations.
Background: The FFIEC 016 implements the reporting of annual company-run stress testing required by the Dodd-Frank Act, Pub. L. No. 111-203, § 165(i)(2), and each agency’s implementing regulation (12 CFR Part 252, Subpart B (FRB); 12 CFR Part 325, Subpart C (FDIC); 12 CFR Part 46 (OCC)). Under this law and the regulations, state member banks, national banks, federal savings associations, state nonmember banks, state savings associations (collectively, “depository institutions”), bank holding companies (BHCs), and savings and loan holding companies (SLHCs) (collectively, “holding companies”), that meet the specified asset threshold are required to conduct an annual stress test using scenarios provided by the agencies.
Respondent Panel: The respondent panel includes any depository institution or holding company (as described above) with average total consolidated assets of at least $10 billion, but less than $50 billion.
Frequency: : Annual. Results of the annual company-run stress test must be reported to the agencies by July 31 of each year based on financial data as of December 31 of the prior year.
Public Release: The agencies do not publish or make available the results from any respondent’s FFIEC 016 submission under 5 U.S.C. 552(b)(4) and (b)(8).