OCC Releases Dodd-Frank Act Stress Test Scenarios for 2023

On February 9, 2023, the Office of the Comptroller of the Currency (OCC) issued a press statement to announce the publication of the stress test scenarios 2023 for OCC supervised institutions. The scenarios „include baseline and severely adverse scenarios“ with high unemployment rates, sharply decreasing asset prices, and low economic activity to simulate different economic and financial market conditions. These scenarios must be used by covered institutions when conducting the required stress tests. The results of the stress tests provide the OCC with capital adequacy information and information on the risk profiles of covered institutions. Details on the 2023 stress test scenarios, including
(a) the applicability and frequency of the tests,
(b) instructions for performing and reporting on the stress tests, and
(c) a description of the scenarios themselves
may be found on the OCC’s website at https://www.occ.gov/publications-and-resources/forms/dodd-frank-act-stress-test/index-dodd-frank-act-stress-test.html.