Smaller U.S. banks approach stress test deadline

first_imgJames Langton Facebook LinkedIn Twitter Related news Share this article and your comments with peers on social media G7 tax pledge may be upstaged by CBDC work High debt levels threaten banks’ strong results: Fitchcenter_img Smaller U.S. banks will be required to disclose the results of their first round of public stress tests in the next couple of weeks, U.S. banking regulators announced Tuesday. The U.S. Federal Reserve Board, along with the other federal agencies that oversee the U.S. banks, reiterated the disclosure requirements that will accompany the stress tests being carried out by smaller banks (firms with total consolidated assets of between US$10 billion and US$50 billion. Keywords Banking industry For the first time this year, the results of the annual stress tests carried out by these companies will be disclosed to the public. The results must be disclosed by the companies between June 15 and 30. Specifically, these firms will be required to disclose the types of risks included in the stress test; a summary of the methodologies used in the stress test; estimates of losses, revenue, and net income; estimated post-stress capital ratios; and an explanation of the most significant causes for the changes in regulatory capital ratios. These exercises are being carried out by he companies themselves, they are not subject to the stress testing that is conducted by the regulators on the industry’s biggest players (those with more than US$50 billion in assets). The company-run stress tests are hypotheticals, the regulators note, and are not intended to be forecasts; nor will the agencies will make any public statements about the results. U.S. action on climate benefits banks, asset managers: Moody’slast_img read more