PART 46—STRESS TESTING Authority: 12 U.S.C. 93a; 1463(a)(2); 5365(i)(2); and 5412(b)(2)(B). Source: 77 FR 61246, Oct. 9, 2012, unless otherwise noted. § 46.1 Authority and purpose. (a) Authority. (b) Purpose. § 46.2 Definitions. For purposes of this part, the following definitions apply: Call Report Covered institution Federal savings association Planning horizon Pre-provision net revenue Reporting year Scenarios Stress test [77 FR 61246, Oct. 9, 2012, as amended at 83 FR 7953, Feb. 23, 2018; 84 FR 54475, Oct. 10, 2019] § 46.3 Applicability. (a) Measurement of average total consolidated assets for a covered institution. (b) Covered institutions that become subject to stress testing requirements. (c) Ceasing to be a covered institution or changing categories. [77 FR 61246, Oct. 9, 2012, as amended at 79 FR 71633, Dec. 3, 2014; 83 FR 7953, Feb. 23, 2018; 84 FR 54476, Oct. 10, 2019] § 46.4 Reservation of authority. (a) Generally. (1) Timing of stress test. (2) Stress tests. (3) Reporting and disclosures. (b) Factors considered. (c) Notice and comment procedures. [77 FR 61246, Oct. 9, 2012, as amended at 79 FR 11313, Feb. 28, 2014; 84 FR 54476, Oct. 10, 2019] § 46.5 Stress testing. Each covered institution must conduct the stress test under this part subject to the following requirements: (a) Financial data. (b) Scenarios provided by the OCC. (c) Significant trading activities. (d) Use of stress test results. (e) Frequency. i.e., [83 FR 7953, Feb. 23, 2018, as amended at 84 FR 54476, Oct. 10, 2019] § 46.6 Stress test methodologies and practices. (a) Potential impact on capital. (1) Pre-provision net revenues, losses, loan loss provisions, and net income, and (2) The potential impact on the covered institution's regulatory capital levels and ratios applicable to the covered institution under 12 CFR part 3 and any other capital ratios specified by the OCC, incorporating the effects of any capital actions over the planning horizon and maintenance by the covered institution of an allowance for loan losses appropriate for credit exposures throughout the planning horizon. (b) Planning horizon. (c) Controls and oversight of stress test processes. (2) The board of directors of the covered institution, or a committee thereof, shall approve and review the policies and procedures of the covered institution's stress testing processes as frequently as economic conditions or the condition of the institution may warrant, but no less than once every reporting year. The board of directors and senior management must be provided with a summary of the stress test results. [77 FR 61246, Oct. 9, 2012, as amended at 79 FR 71633, Dec. 3, 2014; 84 FR 54476, Oct. 10, 2019; 84 FR 56376, Oct. 22, 2019] § 46.7 Reports to the Office of the Comptroller of the Currency and the Federal Reserve Board. (a) Timing. (b) Confidentiality of Reports. [77 FR 61246, Oct. 9, 2012, as amended at 79 FR 71633, Dec. 3, 2014; 83 FR 7953, Feb. 23, 2018; 84 FR 54476, Oct. 10, 2019] § 46.8 Publication of disclosures. (a) Publication date. (1) Unless the OCC determines otherwise, if the $50 billion or over covered institution is a consolidated subsidiary of a bank holding company or savings and loan holding company subject to supervisory stress tests conducted by the Board of Governors of the Federal Reserve System pursuant to 12 CFR part 252, then within the June 15 to July 15 period such covered institution may not publish the required summary of its annual stress test earlier than the date that the Board of Governors of the Federal Reserve System publishes the supervisory stress test results of the covered bank's parent holding company. (2) If the Board of Governors of the Federal Reserve System publishes the supervisory stress test results of the covered institution's parent holding company prior to June 15, then such covered institution may publish its stress test results prior to June 15, but no later than July 15, through actual publication by the covered institution or through publication by the parent holding company pursuant to paragraph (b) of this section. (b) Publication method. (c) Information to be disclosed in the summary. (1) A description of the types of risks included in the stress test under this part; (2) A summary description of the methodologies used in the stress test; (3) Estimates of aggregate losses, pre-provision net revenue, provisions for credit losses, net income, and pro forma capital ratios (including regulatory and any other capital ratios specified by the OCC); and (4) An explanation of the most significant causes of the changes in regulatory capital ratios. (d) Disclosure of estimates for the planning horizon. (2) With respect to the capital ratio disclosure required in paragraph (d)(1) of this section, the disclosure must also include the value at the beginning of the planning horizon, and the minimum over the planning horizon of the estimated quarter-end values of each ratio. [77 FR 61246, Oct. 9, 2012, as amended at 79 FR 71634, Dec. 3, 2014; 83 FR 7954, Feb. 23, 2018; 84 FR 4240, Feb. 14, 2019; 84 FR 54476, Oct. 10, 2019]