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Fed's Barr: The Fed are developing additional scenarios for the 2024 stress tests for large banks
FED'S BARR: THE FED ARE DEVELOPING ADDITIONAL SCENARIOS FOR THE 2024 STRESS TESTS FOR LARGE BANKS.
— Breaking Market News (@financialjuice) October 19, 2023
Added at 1:43pm
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Multiple Scenarios in Stress Testing
Thank you for the opportunity to speak today. I'm here to offer my thoughts on the next steps for stress testing, and in particular why using multiple exploratory scenarios will help improve our understanding of risk in the banking system.1 The stress test as we know it today grew out of the 2009 Supervisory Capital Assessment Program, or SCAP, conducted in the heat of the global financial crisis. In the winter of 2008–09, markets had lost confidence in banks amid wide uncertainty about the future path of the economy and the losses banks could face. This prompted the Federal Reserve and Treasury to conduct a stress ... (full story)