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LAtest TARP Reports: The Supervisory Capital Assessment Program

Published by Department of the Treasury | Department of the Treasury | Metadata Last Checked: August 02, 2025 | Last Modified: 2009-05-07
A banking organization holds capital to guard against uncertainty. Capital reassures an institution’s depositors, creditors and counterparties--and the institution itself--that an event such as an unexpected surge in losses or an unanticipated deterioration in earnings will not impair its ability to engage in lending to creditworthy borrowers and protect the savings of its depositors. During this period of heightened economic uncertainty, U.S. federal banking supervisors believe that the largest U.S. bank holding companies (BHCs) should have a capital buffer sufficient to withstand losses and allow them to meet the credit needs of their customers in a more severe recession than is anticipated. For this reason, the Federal Reserve and other bank supervisors embarked on a comprehensive simultaneous assessment of the capital held by the 19 largest U.S. BHCs in February of this year.

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