Comprehensive Capital Analysis and Review (CCAR)

The Comprehensive Capital Analysis and Review (CCAR) is an annual assessment conducted by the U.S. Federal Reserve to evaluate the financial health of large banks. It examines if these banks have sufficient capital to withstand economic downturns and continue operations. This process involves stress-testing, where banks simulate adverse economic conditions to see how their financial stability holds up. The goal is to ensure that banks can manage risks and protect their customers and the broader economy in times of financial stress. Results determine whether banks can increase dividends or buy back shares.