Formal Stress Testing Guidance Released

June 10, 2011

by John A. Wheeler

The Office for the Comptroller of the Currency (OCC), Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) have issued proposed guidance for banking institutions to create a robust stress testing framework to adequately assess potential risks. his new guidance formally outlines requirements for a broader population of institutions, specifically those with $10 billion or more in assets.

Read more... | Source: The Big Fat Finance Blog.

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In the consultative

In the consultative document, Principles for sound stress testing practices and supervision, the committee suggests losses taken by banks during the financial crisis may have been exacerbated by inadequate stress-testing policies.

This new guidance formally

This new guidance formally outlines requirements for a broader population of institutions, specifically those with $10 billion or more in assets. -Any Lab Test Now

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