For purposes of this subpart, the following definitions apply:
(a) Advanced approaches means the regulatory capital requirements at 12 CFR part 217, subpart E, as applicable, and any successor regulation.
(b) Adverse scenario means a set of conditions that affect the U.S. economy or the financial condition of a bank holding company, savings and loan holding company, or state member bank that are more adverse than those associated with the baseline scenario and may include trading or other additional components.
(c) Asset threshold means:
(1) For a bank holding company, average total consolidated assets of greater than $10 billion but less than $50 billion, and
(2) For a savings and loan holding company or state member bank, average total consolidated assets of greater than $10 billion.
(d) Average total consolidated assets means the average of the total consolidated assets as reported by a bank holding company, savings and loan holding company, or state member bank on its Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) or Consolidated Report of Condition and Income (Call Report), as applicable, for the four most recent consecutive quarters. If the bank holding company, savings and loan holding company, or state member bank has not filed the FR Y-9C or Call Report, as applicable, for each of the four most recent consecutive quarters, average total consolidated assets means the average of the company's total consolidated assets, as reported on the company's FR Y-9C or Call Report, as applicable, for the most recent quarter or consecutive quarters. Average total consolidated assets are measured on the as-of date of the most recent FR Y-9C or Call Report, as applicable, used in the calculation of the average.
(e) Bank holding company has the same meaning as in Sec. 225.2(c) of the Board's Regulation Y (12 CFR 225.2(c)).
(f) Baseline scenario means a set of conditions that affect the U.S. economy or the financial condition of a bank holding company, savings and loan holding company, or state member bank, and that reflect the consensus views of the economic and financial outlook.
(g) Capital action has the same meaning as in Sec. 225.8(c)(2) of the Board's Regulation Y (12 CFR 225.8(c)(2)).
(h) Covered company subsidiary means a state member bank that is a subsidiary of a covered company as defined in subpart F of this part.
(i) Depository institution has the same meaning as in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)).
(j) Foreign banking organization has the same meaning as in Sec. 211.21(o) of the Board's Regulation K (12 CFR 211.21(o)).
(k) Planning horizon means the period of at least nine consecutive quarters, beginning on the first day of a stress test cycle over which the relevant projections extend.
(l) Pre-provision net revenue means the sum of net interest income and non-interest income less expenses before adjusting for loss provisions.
(m) Provision for loan and lease losses means the provision for loan and lease losses as reported by the bank holding company, savings and loan holding company, or state member bank on the FR Y-9C or Call Report, as appropriate.
(n) Regulatory capital ratio means a capital ratio for which the Board established minimum requirements for the company by regulation or order, including, as applicable, a company's tier 1 and supplementary leverage ratio and common equity tier 1, tier 1, and total risk-based capital ratios as calculated under the Board's regulations, including appendices A, D, and E to 12 CFR part 225, appendices A, B, and E to 12 CFR part 208, and 12 CFR part 217, as applicable, including the transition provisions at 12 CFR 217.1(f)(4) and 12 CFR 217.300, or any successor regulation. For state member banks other than covered company subsidiaries and for all bank holding companies, for the stress test cycle that commences on October 1, 2013, regulatory capital ratios must be calculated pursuant to the regulatory capital framework set forth in 12 CFR part 225, appendix A, and not the regulatory capital framework set forth in 12 CFR part 217.
(o) Savings and loan holding company has the same meaning as in Sec. 238.2(m) of the Board's Regulation LL (12 CFR 238.2(m)).
(p) Scenarios are those sets of conditions that affect the U.S. economy or the financial condition of a bank holding company, savings and loan holding company, or state member bank that the Board annually determines are appropriate for use in the company-run stress tests, including, but not limited to, baseline, adverse, and severely adverse scenarios.
(q) Severely adverse scenario means a set of conditions that affect the U.S. economy or the financial condition of a bank holding company, savings and loan holding company, or state member bank and that overall are more severe than those associated with the adverse scenario and may include trading or other additional components.
(r) State member bank has the same meaning as in Sec. 208.2(g) of the Board's Regulation H (12 CFR 208.2(g)).
(s) Stress test means a process to assess the potential impact of scenarios on the consolidated earnings, losses, and capital of a bank holding company, savings and loan holding company, or state member bank over the planning horizon, taking into account the current condition, risks, exposures, strategies, and activities.
(t) Stress test cycle means:
(1) Until September 30, 2015, the period beginning on October 1 of a calendar year and ending on September 30 of the following calendar year, and
(2) Beginning October 1, 2015, the period beginning on January 1 of a calendar year and ending on December 31 of that year.
(u) Subsidiary has the same meaning as in Sec. 225.2(o) the Board's Regulation Y (12 CFR 225.2(o)).