US banks hoping for end of DFAST global market shock
As Fed consults on stress-test reform, lobby group argues regulator is double-counting market risk
US bank lobbyists are hoping a consultation on reform of the Federal Reserve’s stress-testing framework could herald the end of the global market shock (GMS) scenario. Banks argue that this component of the annual Dodd-Frank Act Stress Tests (DFAST) will duplicate a forthcoming capital framework for market risk.
“Given that the proposal explicitly asks for comment on this topic, it does indicate there is a possibility that the Fed may remove global market shock from stress-testing,” says Guowei
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