A decade ago, the Federal Reserve implemented the Comprehensive Capital Analysis and Review (CCAR) process as part of its stress testing framework to assess and regulate capital sufficiency at large bank holding companies. A new study released by SIFMA uses statistical analysis of stress testing scenarios to answer a simple question: does the available evidence indicate that the current Global Market Shock (GMS) and Large Counterparty Default (LCD) shocks from recent CCAR cycles are plausible?

In this podcast, SIFMA president and CEO, Kenneth E. Bentsen, Jr. discusses the study’s analysis and findings with Joseph Seidel, SIFMA’s Chief Operating Officer; Carter McDowell, SIFMA’s Associate General Counsel and Managing Director; and Coryann Stefansson, Senior Advisor to SIFMA.

For more on prudential regulation and its effect on the capital markets, visit www.sifma.org/prudential.

Terms to Know: Prudential Regulation

BHC	Bank Holding Company
G-SIB	Global Systemically Important Bank
LEI	Legal Entity Identifier
QIS	Quantitative Impact Study
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B3	Basel III International Regulatory Framework for Banks
CCAR	Comprehensive Capital Analysis and Review
CLAR	Comprehensive Liquidity Analysis and Review
DFA	Dodd-Frank Wall Street Reform and Consumer Protection Act
EMIR	European Market Infrastructure Regulation
MiFID	Markets in Financial Instruments Directive
MiFID II	Markets in Financial Instruments Directive (revised)
MiFIR	Markets in Financial Instruments Regulation
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CET1	Common Equity Tier 1
T1C	Tier 1 Capital
AT1	Additional Tier 1 Capital
T2C	Tier 2 Capital
TLAC	Total Loss-Absorbing Capacity
RWA	Risk-Weighted Assets
CVA	Credit Valuation Adjustment
CTP	Correlation Trading Portfolio
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LCR	Liquidity Coverage Ratio
HQLA	High Quality Liquid Assets
NCOF	Net Cash Outflows
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NSFR	Net Stable Funding Ratio
ASF	Available Amount of Stable Funding
RSF	Required Amount of Stable Funding
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SLR	Supplemental Leverage Ratio
TE	Total Exposure
PFE	Potential Future Exposure
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FRTB	Fundamental Review of the Trading Book