Fed publishes final rules on stress testing

The Federal Reserve has published final rules related to the stress-testing of major bank-holding companies, state member banks, savings and loan-holding companies, as well as some non-bank financial institutions.

The new rules state that financial institutions will be required to conduct stress tests based on three scenarios set by the Fed. The rules address the stress-test requirements set out in article 165 of the Dodd-Frank Act, while further requirements for enhanced prudential standards