A deep requirement of DFAST 2.0 is the emphasis on stress testing. The Fed mandates that banks cannot merely rely on the supervisory results; they must develop their own models that are as robust, if not more conservative, than the Fed's.
: Banks must provide forward-looking projections of their balance sheets and income over a nine-quarter planning horizon under the provided stress scenarios.
A deep requirement of DFAST 2.0 is the emphasis on stress testing. The Fed mandates that banks cannot merely rely on the supervisory results; they must develop their own models that are as robust, if not more conservative, than the Fed's.
: Banks must provide forward-looking projections of their balance sheets and income over a nine-quarter planning horizon under the provided stress scenarios.