The federal regulator of national banks has set an adjusted “comments due” date of March 14 to its proposed rule on stress testing for banks and savings associations, a result of the 35-day, partial government shutdown that ended late last month.
In a notice published in the Federal Register today, the Office of the Comptroller of the Currency (OCC) said the comments-due date was changed to March, after originally slating a Feb. 19 date.
The proposal by the regulator, made in December, would exempt federally supervised banks and savings associations with less than $250 billion in assets from regulators’ company-run stress test requirements. A similar rule is being considered by the Federal Deposit Insurance Corp. (FDIC).
Both the FDIC and OCC have stress testing requirements in place under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank), which requires stress testing for institutions with $10 billion or more in assets. The requirements are differentiated in current rules (also under Dodd-Frank) for institutions with $10 billion to $50 billion in assets and those with more than $50 billion, and they involve three stress-testing scenarios.
But the regulatory relief legislation adopted last spring – the 2018 Economic Growth, Regulatory Relief, and Consumer Protection Act (EGGRCPA, S. 2155) – raises the minimum asset threshold for the company-run stress testing requirement from $10 billion to $250 billion; replaces the requirement for banks to conduct stress tests “annually” with the requirement to conduct stress tests “periodically”; and no longer requires the “adverse” stress testing scenario (and thus reduces the number of required stress testing scenarios to two).