DFAST (Dodd-Frank Act Stress Test)

The Dodd-Frank Act Stress Test (DFAST) is a mandatory, forward-looking regulatory exercise established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, designed to assess whether large financial institutions possess sufficient capital to absorb losses and continue operations under hypothetical, severely adverse economic and financial market conditions over a nine-quarter planning horizon. DFAST is primarily administered by the Federal Reserve Board (FRB) and the Office of the Comptroller of the Currency (OCC) to enhance the resilience and stability of the U.S. financial system by mandating both supervisory-run and company-run stress tests for covered institutions.