Fed’s Bowman Says Changes to Bank Stress Test Coming Soon

Fed's Bowman says changes to bank stress test coming soon

Watch Bowman Expects Finalized Fed Stress Test Revisions in ‘Coming Weeks’

Federal Reserve Vice Chair for Supervision Michelle Bowman said she expects the Fed to consider final revisions to the stress test framework in the “coming weeks.” Bowman added that the final changes to the agency’s marquee exam are likely to address concerns about risk sensitivity and which risks are captured. She spoke Friday in London.

US Federal Reserve's Michelle Bowman says changes to bank stress test coming soon

The Federal Reserve will soon finalize changes to its bank stress tests. These reforms aim to increase transparency and predictability for lenders. The central bank will reveal more details about its testing models and scenarios. A new rule will average recent stress test results for capital requirements. This overhaul seeks to reduce volatility in bank capital buffers.

3 takeaways from stress test changes and a new SVB review

Fed Vice Chair for Supervision Michelle Bowman outlined three potential changes to stress-test calculations and an assessment of the central bank’s performance amid the 2023 collapse of Silicon Valley Bank.

Fed's Bowman previews new twists in stress test reforms

Federal Reserve Vice Chair for Supervision Michelle Bowman Friday highlighted a pair of new provisions to the forthcoming final stress test framework that arose from public commentary submitted to the agency last year.

Federal Reserve finalizes reforms to bank stress testing framework

The Federal Reserve finalizes stress testing reforms under Vice Chair Bowman, opening models to public comment and freezing capital buffer