Annual Stress Test Requirements for FRB-Regulated Institutions; Final Rule (FRB - Pre-Fed. Reg. Version)

The Dodd-Frank Act requires the Federal Reserve Board to issue regulations that require financial companies with total consolidated assets of more than $10 billion, and for which the Board is the primary federal financial regulatory agency, to conduct stress tests on an annual basis. The Board is adopting this final rule to implement the company-run stress test requirements in section 165(i)(2) of the Dodd-Frank Act regarding company-run stress tests for bank holding companies with total consolidated assets greater than $10 billion but less than $50 billion and state member banks and savings and loan holding companies with total consolidated assets greater than $10 billion. This final rule does not apply to any banking organization with total consolidated assets of less than $10 billion. Furthermore, implementation of the stress testing requirements for bank holding companies, savings and loan holding companies, and state member banks with total consolidated assets of greater than $10 billion but less than $50 billion is delayed until September 2013.

Effective Date: November 15, 2012.

Cross-Reference(s): Dodd-Frank Section 165(i)(2) (Enhanced supervision and prudential standards for nonbank financial companies supervised by the Board of Governors and certain bank holding companies; Stress Tests - By the Company).

See also: FRB Press Release.