Fed to seek opinions on changes to bank stress tests
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2024-12-24 07:03 7,938
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Golden Finance reported that the Federal Reserve said on Monday that Wall Street banks will have the opportunity to comment on a series of adjustments to the Fed's annual bank stress test. The Fed said it would seek public comment on the model it uses to determine banks' assumed losses and earnings under stress scenarios, and suggested reforms also include averaging results over two years to reduce year-to-year changes in capital requirements resulting from stress tests. "These proposed adjustments will not have a material impact on overall capital requirements," the Fed said in a press release. The Fed analyzed the current stress tests and decided to adjust them to increase resilience. The regulator plans to launch a public consultation process on potential adjustments to the stress tests in early 2025.