CONTACT: Laura Peavey
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Forum Statement on Federal Reserve’s Stress Test Reform Proposal
“The proposal addresses the issue of excess volatility in the stress tests, which is an important but technically narrow issue.”
Washington, D.C. – Financial Services Forum President and CEO Kevin Fromer issued the following statement today in response to the Federal Reserve Board’s proposal to reduce capital requirement volatility caused by annual stress test results:
“Today the Federal Reserve issued a proposal that would begin the process of stress test reform. The proposal addresses the issue of excess volatility in the stress tests, which is an important but technically narrow issue. The broader stress test reform agenda must provide transparency of the models and scenarios that are used to determine the annual stress capital buffer requirement and allow important public comment on the models once disclosed.
“We look forward to reviewing today’s proposal and engaging on future proposals that improve the effectiveness of the stress testing framework.”
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