From: Laura Peavey <lpeavey@fsforum.com>
Date: Mon, Dec 23, 2024, 5:34 PM
Subject: Forum Statement on Federal Reserve Stress Tests Announcement
To: Gunnar Larson <G@xny.io>
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Greater transparency in stress testing is key to financial stability and U.S. banking competitiveness. 
Forum Statement on Federal Reserve Stress Tests Announcement“A positive and necessary first step towards establishing the same transparency and public accountability required by law of all other capital requirements.” Washington, D.C. – Financial Services Forum President and CEO Kevin Fromer issued the following statement today in response to the Federal Reserve Board’s announcement regarding the annual stress testing framework: “Today’s announcement is a positive and necessary first step towards establishing the same transparency and public accountability required by law of all other capital requirements; we look forward to reviewing formal proposals to implement these long-overdue changes to the stress test framework. “While Forum members—the eight largest and most diversified banks headquartered in the United States—have consistently passed these hypothetical tests without difficulty, the use of stress testing in setting binding capital requirements demands far greater transparency and public accountability. The opaque nature of the scenarios and models has eroded public trust while creating unwarranted volatility, raising costs and reducing the ability of consumers and businesses to borrow and engage in other banking activities, which places an unnecessary drag on the economy. “We remain committed to working with the Federal Reserve Board to achieve an appropriate stress test regime that promotes financial stability and the competitiveness of the U.S. banking system.” For more information on stress testing, please review the Forum’s fact sheet and other related content.        |
