Fed to seek advice on bank stress testing

Wall Street banks will have the opportunity to comment on a series of adjustments to the Fed's annual bank stress testing, the Federal Reserve said Monday. The Fed said it will seek public comment on the model used to determine hypothetical losses and revenues for banks in stress situations, and the reform proposals also include averaging the results of the two-year tests to reduce year-to-year changes in capital requirements resulting from stress testing. "These proposed adjustments will not have a material impact on overall capital requirements," the Fed said in a news release. The Fed analyzed current stress testing and decided to adjust it to improve resilience. The regulator plans to start a public comment process on potential adjustments to stress testing in early 2025.