FRB Proposes to Modify Regulations for Capital Planning and Stress Testing

The Board of Governors of the Federal Reserve System ("FRB") invited comment on a proposal to modify the regulations for capital planning and stress testing.

The proposed rule would shift the start date of the capital plan and stress test cycles from October 1 of a calendar year to January 1 of the following calendar year. A bank holding company with total consolidated assets of $50 billion or more would be required to submit its capital plan and stress test results to the FRB by April 5, 2014, three months later than under current rulemakings. Additionally, a bank holding company with total consolidated assets of more than $10 billion and less than $50 billion would be required to submit its stress test results to the FRB by July 31. Savings and loan holding companies and state member banks who are subject to the stress tests under Dodd-Frank would also be required to submit their results several months later than under the current rules.

The proposed rule further includes a number of other measures to alter the capital planning and stress test procedures. Comments on the proposed rule must be submitted by August 11, 2014.

See: FRB Press Release.