Proposed revisions to FDIC requirements for stress testing supervised institutions were published in the Federal Register. The proposed revisions would revise the FDIC stress testing requirements to be consistent with Section 401 of the Economic Growth, Regulatory Relief and Consumer Protection Act. Comments on the proposed rule must be submitted by February 19, 2019.
As previously covered, the proposed rule would:
- amend the FDIC's existing stress testing regulations to increase the minimum threshold for applicability from $10 billion to $250 billion (i.e., by eliminating two subcategories under the definition of "covered bank," and by revising "covered bank" to mean a state nonmember bank or state savings association with average total consolidated assets over $250 billion);
- revise the frequency of required stress tests of FDIC-supervised institutions;
- reduce the number of required stress testing scenarios from three to two; and
- make specific conforming and technical changes.
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