Banks improve governance on Fed stress test feedback
Dual reviews of stress testing models and scenarios becoming the norm
US banks are tightening up the governance and controls around stress testing functions in response to recent feedback from the Federal Reserve.
While no banks failed this year’s Comprehensive Capital Analysis and Review on quantitative or qualitative grounds, the Fed has emphasised that it wants to see improvements on governance. “The Fed has given all the US banks and FBOs [foreign banking organisations] their feedback letters, and governance seems to be a common theme,” said Michelle Hubertus
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