Are Internal Stress Tests Mandatory Under Proposed Federal Reserve Prudential Standards?

• By: Staff Editor
• Date: December 28, 2011

Yes. While the Federal Reserve will conduct annual stress tests on all companies covered by the newly proposed rules, companies will also have to conduct their own semi-annual stress tests.

Any state member bank, bank holding company or savings and loan holding company with more than $10 billion in total consolidated assets (that is not a covered company) has to conduct its own annual stress tests, i.e. company-run stress tests.

The results of these stress tests should be summarized and made public.

Read a full summary of the requirements of the new proposed Federal Reserve Prudential Standards and Early Remediation for Covered Companies.