Federal Regulators Release Bank "Stress-Test" Rules
The Federal Reserve Board released the methodology, commonly referred to as a "stress test," used by federal banking supervisory agencies in their "forward-looking capital assessment" of U.S. bank holding companies today. The results of the Supervisory Capital Assessment Program, which examined all U.S. bank holding companies with year-end 2008 assets exceeding $100 billion are expected in early May. Today's white paper notes that "these 19 firms collectively hold two-thirds of the assets and more than one-half of the loans in the U.S. banking system." The federal bank regulatory agencies participating in the Supervisory Capital Assessment Program are the Board of Governors of the Federal Reserve System, the Federal Reserve Banks, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency.
Click here for the Federal Reserve Board's press release, and click here for today's white paper.
