Please enable JavaScript if it is disabled in your browser or access the information through the links provided below. July 17, 2015 For release at 2:00 p.m. EDT The Federal Reserve Board on Friday proposed a rule to modify its capital planning and stress testing regulations. The proposed changes would take effect for the 2016 capital plan and stress testing cycles. The proposed rule would modify the timing for several requirements that have yet to be integrated into the stress testing framework. Banking organizations subject to the supplementary leverage ratio would begin to incorporate that ratio into their stress testing in the 2017 cycle. The use of advanced approaches risk-weighted assets--which is applicable to banking organizations with more than $250 billion in total consolidated assets or $10 billion in on-balance sheet foreign exposures--in stress testing would be delayed indefinitely, and all banking organizations would continue to use standardized risk-weighted assets. Banking organizations are currently required to project post-stress regulatory capital ratios in their stress tests. As the common equity tier 1 capital ratio becomes fully phased in under the Board's regulatory capital rule, it would generally require more capital than the tier 1 common ratio. The proposal would remove the requirement that banking organizations calculate a tier 1 common ratio. The Board is also currently considering a broad range of issues related to its capital plan and stress testing rules. Any modifications will be undertaken through a separate rulemaking and would take effect no earlier than the 2017 cycle. Comments on the proposal will be accepted through September 24, 2015. For media inquiries, call 202-452-2955. Federal Register notice: PDF | HTML Comments: Submit | View Dodd-Frank Act Stress Tests Last Update: July 17, 2015
The Federal Reserve has stated that the big US banks will have another year before they have to clear a high minimum capital requirement. This comes alongside a series of other technical changes in their annual "stress test" examination, which can be found at the linked webpage.