(a) Regular submissions. Each covered company must submit to the Board such data, on a consolidated
basis, that the Board determines is necessary in order for the Board
to derive the relevant pro forma estimates of the covered company
over the planning horizon under the scenarios described in section
238.132(b).
(b) Additional submissions
required by the Board. The Board may require a covered company
to submit any other information on a consolidated basis that the Board
deems necessary in order to:
(1) Ensure that the Board has sufficient information to conduct its
analysis under this subpart; and
(2) Project a company’s pre-provision net revenue, losses,
provision for credit losses, and net income; and pro forma capital
levels, regulatory capital ratios, and any other capital ratio specified
by the Board under the scenarios described in section 238.132(b).
(c) Confidential treatment
of information submitted. The confidentiality of information
submitted to the Board under this subpart and related materials shall
be determined in accordance with the Freedom of Information Act (5
U.S.C. 552(b)) and the Board’s Rules Regarding Availability
of Information (12 CFR part 261).
(d) Capital action assumptions. 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 for inclusion in the numerator
of a regulatory capital ratio; and
(4) The covered company will not make any issuances of common stock
or preferred stock.
