A proposed rule increasing the asset threshold for banking institutions subject to required stress testing is out for comment until March 21, according to a Federal Reserve Board correction published in the Federal Register Wednesday.
The proposal, originally published with an incorrect Feb. 19 comment deadline, would revise the Fed Board’s company-run stress test and supervisory stress test rules to conform with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA, S. 2155). It would revise the minimum threshold for state member banks to conduct stress tests from $10 billion to $250 billion, revise the frequency with which state member banks with assets greater than $250 billion would be required to conduct stress tests, and remove the adverse scenario from the list of required scenarios (leaving two scenarios instead of three).
The proposed rule would also make conforming changes to the Fed Board’s company-run and supervisory stress test requirements for bank holding companies, U.S. intermediate holding companies of foreign banking organizations, and nonbank financial companies supervised by the Fed Board, the board’s Policy Statement on the Scenario Design Framework for Stress Testing, and the stress testing requirements for certain savings and loan holding companies that were proposed for public comment on Oct. 31, 2018.
Additionally, the proposed rule would revise the scope of applicability of the company-run stress testing requirements for certain savings and loan holding companies that were proposed for public comment on Oct. 31, 2018.