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US Federal Reserve to Modernize Bank Stress-Testing for Evolving Market Risks
Seeking to strengthen oversight of large financial institutions, the Federal Reserve announced a forthcoming overhaul of its annual stress-testing framework. The updated process will incorporate new macroeconomic variables, scenario flexibility, and advanced modeling for liquidity and trading risks. Officials said the initiative responds to calls for greater realism in capital assessments following recent market turbulence. Analysts view the shift as a step toward aligning supervisory practices with global standards, ensuring the US banking sector remains resilient under varied economic shocks.
Tags:
- economy
- Federal Reserve
neutral
US Federal Reserve to Modernize Bank Stress-Testing for Evolving Market Risks
Seeking to strengthen oversight of large financial institutions, the Federal Reserve announced a forthcoming overhaul of its annual stress-testing framework. The updated process will incorporate new macroeconomic variables, scenario flexibility, and advanced modeling for liquidity and trading risks. Officials said the initiative responds to calls for greater realism in capital assessments following recent market turbulence. Analysts view the shift as a step toward aligning supervisory practices with global standards, ensuring the US banking sector remains resilient under varied economic shocks.
Tags:
- economy
- Federal Reserve
Explore:Mutual Fund Tools
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The Federal Reserve will revise its bank stress tests to reflect modern market risks, improving transparency and capital oversight for large financial firms.
Seeking to strengthen oversight of large financial institutions, the Federal Reserve announced a forthcoming overhaul of its annual stress-testing framework. The updated process will incorporate new macroeconomic variables, scenario flexibility, and advanced modeling for liquidity and trading risks. Officials said the initiative responds to calls for greater realism in capital assessments following recent market turbulence. Analysts view the shift as a step toward aligning supervisory practices with global standards, ensuring the US banking sector remains resilient under varied economic shocks.
Seeking to strengthen oversight of large financial institutions, the Federal Reserve announced a forthcoming overhaul of its annual stress-testing framework. The updated process will incorporate new macroeconomic variables, scenario flexibility, and advanced modeling for liquidity and trading risks. Officials said the initiative responds to calls for greater realism in capital assessments following recent market turbulence. Analysts view the shift as a step toward aligning supervisory practices with global standards, ensuring the US banking sector remains resilient under varied economic shocks.
Tags:
- economy
- Federal Reserve
- economy
- Federal Reserve
- banks
- regulation
- stress tests