The Federal Reserve, the Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. are considering changes to the implementation timeline for the annual capital-adequacy stress tests required by section 165(i)(2) of the Dodd-Frank Act. As a result, the agencies say that the changes currently under consideration would delay the timeline's implementation until September 2013 for covered institutions with total consolidated assets between $10 billion and $50 billion.
‘A number of commenters on the proposal raised concerns about the proposed timing of compliance with the company-run stress test requirements, specifically questioning if all 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,’ says the Federal Reserve in a press announcement. ‘A key priority in implementing the stress testing requirements of the Dodd-Frank Act is to ensure that companies have robust systems and processes to conduct the stress tests.
‘The delay under consideration would help ensure that these companies have sufficient time to develop high-quality stress testing programs,’ the Federal Reserve adds. ‘The final implementation timeline for all covered institutions will be specified in the final rule.’