Reported 1 day ago
The U.S. Federal Reserve is contemplating significant changes to its annual bank stress tests, allowing lenders to comment on the models and hypothetical scenarios used, as well as averaging results over two years to mitigate capital reserve volatility. This adjustment, prompted by recent legal rulings affecting federal agency powers, aims to enhance the tests' transparency without altering overall capital requirements. Industry groups are pushing for these adjustments as a response to the changing legal landscape and previous judicial rulings that have enabled more litigation against regulatory practices.
Source: YAHOO