Investopedia

Supervisory Capital Assessment Program - SCAP

Dictionary Says

Definition of 'Supervisory Capital Assessment Program - SCAP'

A financial stress test conducted by the Federal Reserve System to assess the capital buffers of U.S. banking organizations. The Supervisory Capital Assessment Program took place in the spring of 2009 during the financial crisis of 2008-2009 and was intended to measure the financial strength of the nation's 19 largest financial institutions going forward.
Investopedia Says

Investopedia explains 'Supervisory Capital Assessment Program - SCAP'

The stress tests were limited to banking organizations with assets in excess of $100 billion dollars; banks that the Fed considered "too big to fail". The requirements of the stress tests measured each institution's Tier 1 common capital against a baseline scenario and a hypothetical scenario that was deemed more adverse. The final results showed that 10 of the 19 banks were deemed to have inadequate capital. That being said, every bank tested met the legally mandated capital requirements.

Articles Of Interest

  1. Analyzing A Bank's Financial Statements

    A careful review of a bank's financial statements can help you identify key factors in a potential investment.
  2. How The U.S. Government Formulates Monetary Policy

    Learn about the tools the Fed uses to influence interest rates and general economic conditions.
  3. How The Federal Reserve Manages Money Supply

    Find out how the Fed manages bank reserves and this contributes to a stable economy.
  4. Are Your Bank Deposits Insured?

    Learn how the FDIC is helping to keep your money in your pockets.
  5. How The Federal Reserve Was Formed

    Find out how this institution has stabilized the U.S. economy during economic downturn.
  6. When The Federal Reserve Intervenes (And Why)

    The Federal Reserve doesn't interfere with the economy every time it flounders. Find out more here.
  7. The Fuel That Fed The Subprime Meltdown

    Take a look at the factors that caused this market to flare up and burn out.
  8. Who Backs Up The FDIC?

    The FDIC insures depositors against loss, but what happens if it runs out of money?
  9. Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.
  10. Introduction To The Continuing Claims Report

    This weekly economic release contains important information concerning unemployment levels and insurance.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
  2. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
  3. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.
  4. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
  5. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
  6. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.
Trading Center