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Fed papers make reference to a post-stress and pre-stress capital. I can't find definitions of these online, but from the context (below), it sounds like the post-stress capital is the estimated capital resulting from a Fed stress test of a bank holding company and pre-stress capital the capital going in.

Is my understanding correct?

Context:Fed Paper - CCAR and Stress Testing as Complementary Supervisory Tools

Importantly, the SCAP assessed whether a BHC had sufficient capital to absorb losses and to continue to operate as a financial intermediary by requiring BHCs to meet a post-stress tier 1 common equity ratio of 4 percent and a tier 1 risk-based capital ratio of 6 percent

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Yes, your guess is right. Basically the stress test scenarios result in Market Risk, Credit Risk and other capital charges which alter the tier 1 capital requirement. Tier 1 known, as going-concern divided by Total capital is the ratio they are looking at. Post stress capital is the tier 1 capital that is available after the application of the stress scenario.

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