Federal Reserve Board requests comment on package of proposals that would increase the transparency

Federal Reserve Board press release December 7, 2017 -------- The Federal Reserve Board on Thursday requested comment on a package of proposals that would increase the transparency of its stress testing program while maintaining the Federal Reserve's ability to test the resilience of the nation's largest and most complex banks.In response to feedback, one of the proposals would release greater information about the models the Federal Reserve uses to estimate the hypothetical losses in the stress tests, including as applied in the Comprehensive Capital Analysis and Review (CCAR). In particular, the following information would be made public for the first time: A range of loss rates, estimated using the Board's models, for loans held by CCAR firms; Portfolios of hypothetical loans with loss rates estimated by the Board's models; and More detailed descriptions of the Board's models, such as certain equations and key variables that influence the results of those models. To learn more click on the picture below to read the release.