Fed’s Quarles: More Transparency Coming to Stress Tests

The Federal Reserve will move soon to bring more transparency to stress testing exercises, Fed Vice Chairman for Supervision Randal Quarles told an industry conference today. Increasing stress test transparency is a long-standing American Bankers Association priority.

Quarles said the Fed will issue a request for public comment in “a very short period of days” that would, among other topics, ask whether certain assumptions embedded in the stress tests are appropriate. “Changing the tenor of supervision will probably be the biggest part of what I’ll do” at the Fed, he said.