Fed proposes averaging large bank stress test results to reduce volatility

Fed proposes averaging bank stress test results over two years to reduce volatility

Fed proposes stress-test makeover

The central bank’s proposed changes would reduce year-over-year fluctuations in capital requirements. The regulator also plans to announce further tweaks – around transparency – later this year.

Fed proposes averaging large bank stress test results to reduce volatility

The Federal Reserve kicked off a sweeping effort to overhaul its annual stress tests of large banks on Thursday, proposing to average results over two years in setting capital requirements.

Fed proposes averaging stress test results over 2 years

The Federal Reserve proposed a rule to average individual banks' stress test results over two years, a measure the central bank says would reduce volatility in bank capital requirements from year to year.

Fed Proposes Major Overhaul to Smooth Bank Stress Tests

The Federal Reserve has thrown down the gauntlet, proposing a significant overhaul of its annual stress tests for large banks. The central bank is seeking comments on a plan that aims to reduce the volatility of capital requirements stemming from these tests, marking the first step in a series of changes announced last December. The Fed’s move is a response to the evolving landscape of… Source

US Fed proposes averaging large bank stress test results to reduce volatility

The US Federal Reserve kicked off a sweeping effort to overhaul its annual stress tests of large banks on Thursday (Apr 17), proposing to average results over two years in setting capital requirements.