NY Fed Director of Research Describes the Evolution of Supervisory Stress Testing

In remarks at the 2018 Federal Reserve Stress Testing Research Conference, Federal Reserve Bank of New York Executive Vice President and Director of Research Beverly Hirtle reviewed (i) the evolution of stress testing on regulatory capital ratios and (ii) how the significant design choices that were made led to the stress test becoming a key supervisory policy tool. Ms. Hirtle recommended areas for new research that could help advance the development of stress test modeling.