The Federal Reserve Board has finalized changes designed to enhance the transparency and public accountability of its stress test and to reduce volatility in its stress test-related capital requirements.
The Board of Governors of the Federal Reserve System released the changes, which apply to the central bank's annual stress testing of large banks and the capital requirements tied to those results.
The Fed said the changes are intended to make the stress test process more transparent and publicly accountable, while smoothing swings in the capital requirements that follow from it.
The announcement was made in a press release issued by the Board of Governors of the Federal Reserve System in Washington, D.C.