Chairman Bernanke Speech on Stress Testing Banks

Federal Reserve Chairman Ben S. Bernanke delivered a speech at the "Maintaining Financial Stability: Holding a Tiger by the Tail" financial markets conference sponsored by the Federal Reserve Bank of Atlanta, Stone Mountain, Georgia. Chairman Bernanke discussed the Fed's plans to avert strains in the banking system by pushing financial companies to better manage liquidity risk and reduce reliance on wholesale funding. The use of supervisory stress tests have strengthened the banking system and aided economic growth, according to Bernanke. In his speech, Bernanke discussed: (i) the state of the banking system; (ii) the evolution of stress testing; and (iii) the benefits and challenges of stress testing.

View speech in full here (links externally to Federal Reserve website).For a compilation of recent related news items, link to Current Topics - Stress Tests.