WASHINGTON (8/28/12)--The implementation of regulations that would require holding companies, state member banks, and savings and loan holding companies with between $10 billion and $50 billion in assets to perform yearly, company-run stress tests could be delayed until September 2013, the Federal Reserve said on Monday.
The stress tests, required by the Dodd-Frank Wall Street Reform Act, are scheduled to go into effect when the stress test final rule, now in the proposed stage, is made final.
Banks have pressed the Fed to rework the stress test regulations. Some banks in comment letters said some of the stress tests overlapped with those of other regulators. They also took issue with the scheduling and disclosure of stress test results.
The Fed in a release said many commenters questioned whether their financial institutions would have the resources, readiness, and ability to conduct stress tests, given the likely short period between publication of a final rule and the start of the stress testing process.
"The delay under consideration would help ensure that these companies have sufficient time to develop high-quality stress testing programs," the Fed said.
The agency added it has discussed the potential stress test delay with representatives from the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp.
For the full Fed release, use the resource link.