By Pete Schroeder
Washington, April 17 (Reuters) - The Federal Reserve Kicked off a Sweeping Effort to Overhaul Its Annual Stress Tests of Large Banks on Thursday, Proposing to Average Results Over Two Years in Setting Capital Requirements.
The Central Bank Also Proposed Giving Banks Three More Months to Adjust to the Capital Requirements Set by the Exam, as Part of Its Overarching Bid to Make the Process More Transparent and Less Volatile. Under the Proposal, Banks Receiving Test Results in June Would Have Until January to Adjust Capital Plans, as Opposed to the Current October Deadline.
In Addition, the Fed Said It Was Streamlining the Data It Collects From Banks Under the Process, but Noted That None of the Changes Are Designed to Significantly Change the Capital Requirements Banks Face.
(Reporting by Pete Schroeder; Editing by Chris Reese)
((Pete.schroeder@Thomsonreuters.com; 202-310-5485;))
