Reported about 15 hours ago
The Federal Reserve has proposed a new initiative to publish detailed models and methodologies used in stress tests for the nation's largest banks. This move aims to increase transparency and address concerns over the current system's limited openness and potential volatility, which affects banks' capital planning and understanding of capital requirements. The Fed's stress tests, mandated annually since the 2008 financial crisis, are designed to ensure banks can withstand severe economic downturns. However, there are differing opinions within the Fed about the impact of this proposal on the credibility of the stress tests.
Source: YAHOO