Modifying company-run stress testing requirements to conform with EGRRCPA (S. 2155)

Title: Modifying company-run stress testing requirements to conform with EGRRCPA (S. 2155)
Subject: Stress tests
Agency: Federal Reserve
Status: Proposed rule
Summary: The proposal (similar to separate proposals issued by the Federal Deposit Insurance Corp. (FDIC) and the Office of the Comptroller of the Currency (OCC)) would raise the threshold requiring state-member banks to conduct their company-run stress tests from $10 billion in total consolidated assets to $250 billion. Additionally, in place of the current annual cycle, the proposal would generally require firms above the threshold to conduct company-run stress tests once every other year.

The proposal also would eliminate the hypothetical “adverse” scenario from company-run stress tests for bank holding companies, state member banks, U.S. intermediate holding companies of foreign banking organizations, and any nonbank financial company supervised by the Board. Similarly, the Fed would no longer include an “adverse” scenario in its supervisory stress tests. The firms would still be required to test themselves against a more severe hypothetical scenario, known as the “severely adverse” scenario, and the supervisory stress tests also would continue to include a “severely adverse” scenario.

FR Doc:

2019-02976 (Comment period end date corrected)

Date proposed: January 8, 2019
Comments due date: March 21, 2019
Final rule effective date:
Rule compliance date:
Agency release:

Federal Reserve Board invites public comment on proposal that would modify company-run stress testing requirements to conform with Economic Growth, Regulatory Relief, and Consumer Protection Act

Related Reg Report item(s):

Fed’s company-run stress test proposal out for comment under EGRRCPA