Today, the Federal Reserve issued a final policy statement describing the processes it will use to develop scenarios for future capital planning and stress testing exercises. The policy statement will be used to develop supervisory scenarios for both annual supervisory and company-run stress tests. It describes the characteristics of the stress test scenarios and explains the procedures for formulating the scenarios.
The Federal Reserve noted that the macroeconomic scenarios released last week for the 2014 stress testing exercise are consistent with the final policy statement.
We have prepared a blackline of the final policy statement against last year’s proposed version.