The Fed will solicit comments on adjustments to bank stress tests

Golden Finance reported that the Federal Reserve stated on Monday that Wall Street banks will have the opportunity to comment on a series of adjustments to the Fed’s annual bank stress tests. The Fed stated that it will seek public opinion on the models used to determine banks’ assumed losses and incomes under stress, and the reform proposals also include averaging the test results over two years to reduce the annual variation in capital requirements caused by stress tests. The Fed stated in a press release, “These proposed adjustments will not have a substantial impact on overall capital requirements.” The Fed analyzed the current stress tests and decided to make adjustments to enhance flexibility. Regulatory agencies plan to launch a public consultation process on potential adjustments to stress tests in early 2025.