The United States financial stability architecture operates a dual-layered review process for large banking organizations through DFAST and CCAR.
Reconciling DFAST and CCAR Workflows
  Oversight Program |   Evaluation Methodology Matrix   |   Supervisory Enforcement Focus
--------------------+-----------------------------------+-----------------------------------------
  DFAST Framework   | Quantitative forward-looking math | Measures capital ratio baseline survivals
  CCAR Process      | Quantitative + Qualitative audits | Reviews capital distribution & risk governance systems

  • DFAST: A quantitative exercise where both the Federal Reserve and the banks use standardized models to project capital ratios under stress scenarios, verifying the institution holds a sufficient equity cushion.
  • CCAR: A broader review that combines quantitative projections with intensive qualitative audits of the bank’s internal risk management systems, data line histories, and capital distribution plans. The Fed can block a bank’s plan to buy back shares or pay dividends if it uncovers systemic weaknesses in its risk governance systems.
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