Federal Reserve Proposes to Increase Transparency of Stress Testing Regimes

20 December 2017
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Key takeaways
  • On December 7, 2017, the Federal Reserve Board (the “FRB”) released a set of proposals aimed at increasing the transparency of its stress testing programs.  
  • The proposals include enhanced model disclosure, amendments to the FRB’s policy statement on scenario design, and a new policy statement on supervisory stress testing.   
  • The proposals follow years of criticism that the FRB’s stress testing programs are opaque and requests for increased transparency regarding the models that the FRB uses to conduct stress tests. The comment period for the proposals ends on January 22, 2018.