Federal Reserve Board Requests Comment on Package of Proposals that would Increase the Transparency of its Stress Testing Program

On December 7, 2017, the Federal Reserve Board requested comment on a package of proposals that would increase the transparency of its stress testing program.  The proposed enhanced disclosures have three components: (1) enhanced descriptions of supervisory models, including key variables; (2) modeled loss rates on loans grouped by important risk characteristics and summary statistics associated with the loans in each group; and (3) portfolios of hypothetical loans and the estimated loss rates associated with the loans in each portfolio.  Comments on the measures will be accepted through January 22, 2018. Press Release.