Public comments on proposed modifications to yearly stress-testing of large banks – averaging results over two consecutive years and streamlining related data collection – are due to the Federal Reserve Board by June 23, according to a Federal Register notice.
The Fed, announcing its proposed rule earlier this month, said it was looking to modify its stress test to improve its resiliency. It said it planned later to also seek to improve stress-test transparency.
The proposal out for comment now would average stress test results to reduce the year-over-year changes in the capital requirements that result from the test; and delay the annual effective date of the stress capital buffer requirement from Oct. 1 to Jan. 1 of the following year. The Fed said that would give banks additional time to adjust to their new capital requirements.
The Fed said it was also proposing targeted changes to streamline its stress test-related data collection. It said these changes are not designed to materially affect overall capital requirements.
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