This story appeared in Bank Digest.
The Federal Reserve Board is proposing changes to its annual Comprehensive Capital Analysis and Review that would relieve large but noncomplex firms from the requirement to complete the qualitative assessment. The proposal would benefit bank holding companies and foreign companies' intermediate holding companies that have between $50 billion and $250 billion in consolidated assets, on-balance sheet foreign exposures of less than $10 billion, and consolidated nonbank assets of less than $74 billion, the Fed said. Related reporting requirements also would be eased.
Fed Governor Daniel K. Tarullo explained the Fed's thinking and outlined possible future amendments in remarks prepared for the Yale School of Management Leaders Forum. According to Tarullo, the proposed changes are results of a review of the Dodd-Frank Act stress test and CCAR program that began after the 2015 testing cycle. Comments on the proposal must be received by Nov. 25, 2016.
In a statement, Rep. Blaine Luetkemeyer (R-Mo) said that while the announcement "represents a step forward, a risk-based approach is a better way to both protect consumers and promote economic growth."