Supervisory Capital Assessment Program - SCAP

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 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.



comments powered by Disqus
Hot Definitions
  1. Mortgage Modification

    A permanent change in a homeowner's home loan terms that makes the monthly loan payments affordable.
  2. Leveraged Benefits

    The use – by a business owner or professional practitioner – of their company’s receivables or current income to secure a loan whose proceeds then indirectly fund a retirement plan.
  3. Direct Consolidation Loan

    A loan that combines two or more federal education loans into a single loan. A Direct Consolidation Loan allows the borrower to make a single monthly payment. The loan is facilitated by the U.S. Department of Education and does not require borrowers to pay an application fee.
  4. Through Fund

    A type of target-date retirement fund whose asset allocation includes higher risk and potentially higher return investments "through" the fund's target date and beyond.
  5. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold or disposed of first.
  6. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version of success in a society where upward mobility is possible for everyone. The American dream is achieved through sacrifice, risk-taking and hard work, not by chance.
Trading Center