WASHINGTON (Reuters) -The U.S. Federal Reserve unveiled plans Friday to make its models and scenarios for subjecting large banks to annual “stress tests” publicly available and responsive to feedback, a major shift in its efforts to make the tests more transparent. The proposed changes, which the Fed board is expected to vote on later Friday, […]
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Fed lays out proposed changes bank stress tests
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WASHINGTON (Reuters) -The U.S. Federal Reserve unveiled plans Friday to make its models and scenarios for subjecting large banks to annual “stress tests” publicly available and responsive to feedback, a major shift in its efforts to make the tests more transparent.
The proposed changes, which the Fed board is expected to vote on later Friday, would shine a light on a critical regulatory tool established following the 2008 financial crisis. The test results each year help set capital requirements for large banks, based on how well they perform in a hypothetical economic downturn.
(Reporting by Pete Schroeder; Editing by Chizu Nomiyama )