CCAR (Comprehensive Capital Analysis and Review)

CCAR, or Comprehensive Capital Analysis and Review, is an annual assessment by the Federal Reserve to ensure banks with significant assets can handle financial stress. It evaluates whether these banks have enough capital (money set aside) to absorb losses during economic downturns, and whether they are planning to continue lending and supporting the economy. The process involves reviewing the bank’s financial health, risk management, and capital plans, helping to promote stability in the financial system and protect consumers during challenging times.