BPI and ABA Respond to Federal Reserve's Final Stress Testing Rules

The statement noted that transparency and public input have improved the stress testing framework, enhancing its accuracy and facilitating more effective capital planning for covered banks, ultimately benefiting the economy.

The organizations highlighted the Fed’s decision to re-propose certain pre-provision net revenue models as an illustration of how public commentary can lead to better policy outcomes, in compliance with the Administrative Procedure Act. They expressed appreciation for the Fed's thorough approach in addressing flaws identified during the comment process.

The Bank Policy Institute is a nonpartisan organization that advocates for universal and regional banks and major foreign banks operating in the U.S., providing research and policy analysis on regulatory matters.

The American Bankers Association represents the $26.5 trillion banking industry, which includes a mix of small, regional, and large banks, employing over 2 million people, safeguarding $20.7 trillion in deposits, and extending $13.9 trillion in loans.