While the Federal Reserve has given stress tests to the nation’s banks since the financial crisis, the Fed chair’s semi-annual testimony before both houses amounts to Congress’ own version of stress testing the nation’s top central banker. But in her first of two days of appearances on Capital Hill, Fed Chair Janet Yellen’s so-called Humphrey-Hawkins
The Fed is requiring Bank of America to suspend its dividend and buyback programs.
Like banks, big credit unions might need to test how they’d fare in extreme scenarios.
In the next few months, banks will be subjected to a stress test that will pit their balance sheets against an economic obstacle course.
The Federal Reserve Board wants to see if more banks are ready to deal with financial stress.
The Fed announced new stress testing requirements this week, but small banks won’t need to pass the examinations.