The Dodd-Frank Wall Street Reform and Consumer  Protection Act requires the Board of Governors of the Federal Reserve System (Board) to conduct an annual supervisory stress test of bank holding companies (BHCs) with $50 billion or greater in total consolidated assets (large BHCs) and to require  BHCs and state member banks with total consolidated assets of more than $10 billion to conduct company-run stress tests at least once a year. The Dodd-Frank Wall Street Reform and Consumer Protection Act requires the Board of Governors of the Federal Reserve System (Board) to conduct an annual supervisory stress test of bank holding companies (BHCs) with $50 billion or greater in total consolidated assets (large BHCs), and to require BHC sand state member banks with total consolidated assets of more than $10 billion to conduct company-run stress tests at least once a year.1 This publication describes the three supervisory scenarios baseline, adverse, and severely adverse that the Board will use in its supervisory stress test; that a BHC or state member bank must use in conducting its annual company-run stress test for this stress test cycle; and that a large BHC must use to estimate projected revenues, losses, reserves, and pro forma capital levels as part of its capital plan submission.2 The publication also details additional components that certain BHCs will be required to incorporate into the supervisory scenarios—the global market shock component and the counterparty default component. The adverse and severely adverse scenarios describe hypothetical sets of conditions designed to assess the strength of banking organizations and their resilience to adverse economic environments. The scenarios are not forecasts. The baseline scenario follows a similar profile to the average projections from surveys of economic forecasters. It does not represent the forecast of the Federal Reserve.