FRB Proposes Rule Amending Company-Run Stress Testing Requirements

The Federal Reserve Board ("FRB") proposed a rule amending the FRB's company-run stress test and supervisory stress test rules, consistent with Section 401 of the Economic Growth, Regulatory Relief and Consumer Protection Act.

According to the FRB Notice of Proposed Rulemaking, the proposed amendments would:

• revise the minimum threshold for state member banks to conduct stress tests from $10 billion to $250 billion;
• revise the frequency with which state member banks with assets greater than $250 billion would be required to conduct stress tests;
• remove the adverse scenario from the list of required scenarios;
• make conforming changes to (i) the FRB's company-run and supervisory stress test requirements for bank holding companies, U.S. intermediate holding companies of foreign banking organizations, and nonbank financial companies supervised by the Board, (ii) the FRB's Policy Statement on the Scenario Design Framework for Stress Testing, and (iii) the