The 2016 Dodd-Frank Act stress test shows First Horizon National Corp. and its First Tennessee regional bank would maintain capital well in excess of regulatory “adequate” levels under severely adverse economic and financial conditions, said officials. The annual stress tests, which are designed to ensure banks would have enough capital to operate in economically challenging times, are required of national banks and federal savings associations with assets of at least $10 billion.
The tests measure capital levels, as required by the regulatory agencies noted below, in the face of hypothetical “severely adverse” events specified by regulators including a greater-than-50-percent drop in the U.S. stock market, a greater-than-25-percent drop in U.S. real estate values, a significant and rapid contraction of the U.S. economy, a 10 percent unemployment rate and negative interest rates on short-term Treasury notes.
In July First Horizon submitted results of its annual Dodd-Frank Act Stress Test, commonly known as DFAST, to the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System. A summary of the results is available in the investor relations news and events section of the company’s website at www.FirstHorizon.com.