The Office of the Comptroller of the Currency is seeking public comment on a proposal that would require financial institutions with consolidated assets of $50 billion or more to complete annual stress test reporting.
Under the 2010 Dodd-Frank Act, financial institutions with more than $10 billion in consolidated assets, including federal savings associations and national banks, must conduct annual stress tests. Additionally, the primary financial regulator of those institutions must issue regulations that implement the stress test requirements.
The notice of proposed information collection details the reports required in order for those covered institutions to meet the reporting requirements. The OCC will use the data in assessing the reasonableness of of covered institutions’ stress test results and to provide forward-looking information regarding a covered institution’s capital adequacy to the OCC.
The OCC will also publish a separate proposal soon that addresses the reports to be filed by institutions with between $10 and $50 billion in assets.
Stress tests are conducted under hypothetical scenarios and demonstrate how a financial institution would perform under economic stress.
The comment period is open to the public until Oct. 15.