Sabeth Siddique
Director
DELOITTE & TOUCHE LLP
Washington, D.C.
Stress testing and capital planning have become an area of focus of
regulators since the financial crisis. Macro-prudential supervision
calls for forward-looking supervisory initiatives. Having a robust
internal capital adequacy process that incorporates a sufficient
adverse-case stress scenario is an important component to submitting
a credible capital plan. Upcoming new regulations will require all
institutions over $10 billion to stress test and institutions over
$50 billion to conduct stress tests and submit a capital plan.
Understanding the regulatory expectations for these activities will
be imperative.
