Banking regulators seek comment on proposed guidance for company-run stress tests

126px-US-FederalReserveSystem-Seal.svgBanking regulators have requested public comment on proposed guidance that lays out supervisory expectations for stress tests conducted by firms with assets of between $10 billion and $50 billion.

The OCC, FDIC and Federal Reserve have proposed guidance for medium-sized firms that are, under the Dodd-Frank Act, required to conduct company-run stress tests every year, beginning this fall.

The guidance was issued to help the companies conduct the stress tests based on their market footprint, business mix, risk profile, complexity and size. The stress rules allow firms to use various approaches, and the guidance lays out general expectations for the Dodd-Frank-mandated tests, providing examples of approaches consistent with the expectations.

The proposed guidance will be open for public comment until Sept. 25.

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