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Federal Reserve will solicit opinions on adjustments related to bank stress tests

Internet reports that the Federal Reserve said on Monday that Wall Street banks will have the opportunity to comment on a series of adjustments to the Federal Reserve's annual bank stress test. The Fed said it would seek public comment on models used to determine banks 'assumed losses and income under stress situations, and the reform proposals also include averaging test results over two years to reduce year-on-year changes in capital requirements caused by stress tests. "These proposed adjustments will not have a material impact on overall capital requirements," the Fed said in a press release. The Fed analyzed the current stress tests and decided to adjust them to increase flexibility. Regulators plan to launch a public comment process on potential changes to stress testing in early 2025.

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