Stress Test Requirements Clarified for Medium-Sized Entities

June 12th, 2015

The Federal Reserve, Federal Deposit Insurance Corporation (FDIC) and the Comptroller of the Currency (OCC) recently announced clarifications to the stress test requirements for medium-sized financial institutions.  Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), financial institutions with assets between $10 billion and $50 billion are allowed to conduct their own internal stress tests, as opposed to the regulator-administered stress tests for larger entities.

The announcement clarifies that those medium-sized financial institutions will still be required to disclose the results of their internal stress tests. Nearly 50 financial institutions will be affected by the new requirement.

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