Calling the current stress-test regime for large banks “too complex and opaque,” the national bank regulator late Monday praised the Federal Reserve for proposing changes to the stress test models.
Comptroller of the Currency Jonathan V. Gould said the Fed’s proposal issued Oct. 24 would promote transparency and improve accountability around the annual stress tests.
The Fed’s asked for comment on the stress test models, changes to the framework that guides the design of the hypothetical scenarios, and the hypothetical scenarios for the upcoming 2026 stress test. Comments are due by Dec. 1.
“The stress testing regime established after the Global Financial Crisis has been too complex and opaque,” Gould said in a statement. “The Federal Reserve’s action is an important step toward restoring public trust, better aligning with the requirements of the Administrative Procedures Act (APA), and moving toward a holistic public understanding of the post-Global Financial Crisis capital framework.”
Gould said his agency (the Office of the Comptroller of the Currency (OCC)) “is committed to regulatory transparency, clarity, and improved accountability, and is working to ensure these principles are foundational to its approach to the supervision and regulation of the federal banking system.”
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