Review and summarize the latest Dodd-Frank Act Stress Test results. Review and summarize the latest BASEL...

Review and summarize the latest Dodd-Frank Act Stress Test results.
Review and summarize the latest BASEL III disclosures.

Solutions

Expert Solution

DODD FRANK ACT STRESS TESTING

1. Meaning of DODD FRANK ACT STRESS TESTING

its short form is DFAST

its a type of testing , which is a forward looking exercise , designed to determine the ability of a given financial instrument or financial institution to dealwith an economic crisis.

these are the regulatory framework introduced to enhance the capacity to recover quickly from the difficulties of banks and financial institutions .

its a forward looking quantitative evaluation of bank capital that demonsrates how the stressful economic conditions developed by the federal reserve would affect the capital ratios of the large firms.

2.summary of DFAST 2019 (latest one)

the result of the year (2019) , suggest that , in the aggregate 18 firms subject to the test , would experience substantial losses under adverse and severaly adverse scenarios . eventhough they will continue lending to businesses and households .
aggregate losses atthe 18 firms under severaly adverse scenarios are to be 410 billion dollar.
aggregate projected pre provision net revenue in DFAST 2019 is to be 327 billiondollar, compared with 389 billion dollar in DFAST 2018.
the projected decline in pre tax net income is 0.8 percent average total assets

BASEL 3 DISCLOSURE

Latest one is , BASEL 3 - PILLAR 3 DISCLOSURES AS AT SEPTEMBER 30 , 2019
basel 3 capital regulations are applicable to banks in India from 1st April 2013 .
its detailed regulations are issued by RBI , under Basel 3 capital regulations july 2015 and are amended timely
it includes 3 mutually inforcing pillars . they are ,

pillar 1 is minimum capital requirements for credit risk , market risk and operational risk

pillar 2 is supervisory review of capital adequacy

pillar 3 is market discipline.

this basel regulation is applicable to IDFC FIRST Bank and its one wholly owned subsidiary IDFC FIRST Bharat limited which together constitute the group.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Explain the relevance of the Dodd Frank Act and the BASEL Agreements to US banks who...

Explain the relevance of the Dodd Frank Act and the BASEL Agreements to US banks who conduct business on a global basis.

Explain the good/bad of the Dodd-Frank Act.

In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank”) was signed into federal...

In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank”) was signed into federal law. Under this Act, whistleblowers that bring violations of securities & commodities law, or the Foreign Corrupt Practices Act (FCPA) to the attention of the proper government authorities are entitled to between 10% to 30% of any government recovery in excess of $1 million. Do you believe it is appropriate/ethical for the government to incentivize reporting fraud and other wrongdoings in return for a...

Should there be changes to the Dodd-Frank Act? Why or why not?

How dodd frank act curb excessive executive compensation?

Dodd-Frank is an act which is not, technically, fully written. One portion of this act which...

Dodd-Frank is an act which is not, technically, fully written. One portion of this act which has gotten much attention in the past year is the “CFPB”. Provide an explanation of what CFPB is and what it does, in general. Also, provide some background as to why the agency has been in the news so much over the, say, past three to six months. (You are limited to one type-written page or less for your answer.)

Question