Fed to Finalize Reform Plan in Coming Weeks to Boost Bank Stress Test Transparency and Accountability

Odaily News: Federal Reserve Governor Bowman said the Fed will finalize a reform plan in the "coming weeks" to improve the transparency and accountability of bank stress tests. The related adjustments will make stress tests more reliable and reduce volatility in bank capital requirements. Fed supervisors failed to act promptly and decisively to require Silicon Valley Bank to reduce its risk exposure. In the future, when determining a bank's "stress capital buffer," the Fed will use the average of the bank's two most recent stress test results. (CLS)