Quarles: Fed to Consider Performance Through Pandemic in Stress Tests

The Federal Reserve will incorporate banks’ performance in the economic fallout of the coronavirus pandemic into the ongoing 2020 stress tests, Vice Chairman for Supervision Randal Quarles signaled today.

“We’re going through an actual stress currently,” Quarles said during a webcast hosted by the University of Utah’s Eccles School of Business. “I think the right thing to do is for us to continue our stress tests, but as part of them to analyze how banks’ portfolios are responding to real current events.”

Quarles added that the Fed would “use that analysis to inform determinations we make about the regulation and supervision of the financial sector.”