Annual Stress Test; Final Rule (FDIC - Fed. Reg. Version)

The FDIC is issuing a final rule that implements the requirements in Section 165(i) of the Dodd-Frank Act regarding stress tests ("final rule"). Section 165(i)(2) requires the Corporation to issue regulations which require FDIC-insured state nonmember banks and FDIC-insured state-chartered savings associations with total consolidated assets of more than $10 billion to conduct annual stress tests, report the results of such stress tests to the Corporation and Federal Reserve Board, and publish a summary of the results of the stress tests. The final rule requires large covered banks to conduct annual stress tests beginning on the effective date of this final rule.

The Corporation, however, will delay until September 30, 2013 the implementation of the annual stress test requirements under the final rule for institutions with total consolidated assets of more than $10 billion but less than $50 billion. The final rule requirement for public disclosure of a summary of the stress testing results for these institutions will be implemented starting with the 2014 stress test, with the disclosure occurring during the period starting June 15 and ending June 30 of 2015.

Effective Date: October 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).

View rule release here: 77 FR 62417. See also: FDIC Press Release.