FDIC to Vote on Bank Stress Test Proposal
Bank regulators are set to approve a plan on Tuesday for how banks with more than $10 billion in assets should conduct annual stress tests to determine their ability to withstand a financial shock.
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The proposal will be out for comment for 60 days. Federal Deposit Insurance Corp. staff say it is not yet clear whether the first tests will be held this year or next. The FDIC board will vote on the proposal on Tuesday.
Under the proposal, regulators would provide banks with stress scenarios each year in November. The banks would run the scenarios and report back to regulators in January.
The tests are intended to give both banks and regulators an idea of how well banks are prepared for a crisis, as well as any steps they may be able to take to strengthen their operations.
Banks would be required to publish the results of their stress tests within 90 days of submitting them to regulators.
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