Fed Set to Revamp Bank Stress Tests
The Federal Reserve plans to finalize an overhaul of its bank stress tests to make the process more transparent. Michelle Bowman said the changes will reduce capital volatility and improve predictability for lenders.
The United States central bank will soon finalize an overhaul of bank stress tests to make the framework more transparent and predictable. The reforms follow years of industry complaints and a 2008 financial crisis regulatory regime that lenders argued was overly opaque. The overhaul aims to give the public and lenders clear visibility into testing models while easing capital requirements.
