When Comprehensive Capital Analysis and Review (CCAR) was mandated by the Federal Reserve in response to the financial meltdown of 2008, it provided a framework for assessing banking organizations with consolidated assets over $10 billion. Designed to help prevent future turmoil in the financial services industry, this stress testing ensures large institutions are able to withstand changing economic conditions, providing uniform and consistent service.
Data quality is a critical component in CCAR compliance. The Federal Reserve Board (FRB) provides detailed rules, called schedule instructions, which define the specific checks that must be performed against a financial institution’s data. Called edit checks, this testing focuses on a wide variety of issues related to overall data quality.