Federal Reserve Board Vice Chair for Supervision Michael S. Barr promoted incorporating "exploratory scenarios" to address limitations in the FRB's current stress test program for the U.S. banking system.
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Based on the most recent stress tests, the Federal Reserve Board concluded that large banks had enough capital to continue to lend to households and businesses, even if they were required to absorb more than $540 billion in losses.
Federal Reserve Board Vice Chair for Supervision Michael S. Barr outlined the elements of the board's "holistic" review of capital standards, and emphasized the importance of sufficient bank capital with respect to financial stability.
The Federal Reserve Board announced the six major U.S. commercial banks that will participate in a pilot climate scenario analysis exercise designed to improve their ability to identify and mitigate climate-related risk.
The Federal Reserve Board released individual capital requirements for large banks.