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For Immediate Release
June 22, 2017
​ABA Media Contact: Jeff Sigmund
(202) 663-5439
Follow us on Twitter: @ABABankers

ABA Statement on Federal Reserve Stress Test Results

By Rob Nichols, ABA president and CEO

     “Today’s results reaffirm that U.S. banks are strong and remain well positioned to continue playing their important role in accelerating economic growth. Banks’ robust capital and liquidity positions would allow them to continue to function well under even the most extreme scenarios.

     “From this solid foundation, the focus should now turn to what can be done to help U.S. banks promote economic growth even further.  We are encouraged that Treasury’s recent report on financial regulations included recommendations for tailoring the stress test process to a bank’s unique business model, and believe this process should not be triggered by arbitrary asset thresholds.  In addition, Treasury’s recommendation to go from two stress tests a year to one and to make the CCAR process a two-year cycle would allow banks to focus more on risk management than regulatory compliance exercises. 
     “Adopting the stress test reform recommendations in Treasury’s recent report would go a long way toward making the process more valuable as a forward-looking and flexible supervisory and management tool.  We also strongly support Treasury’s recommendation to receive public input on the supervisory models and scenarios rather than forcing bankers to manage, price and allocate capital without a fully informed view of key regulatory drivers and expectations.  We appreciate that the Federal Reserve and other policymakers are already considering many of these same ideas.  We look forward to working with them to continue to improve the stress test process.”
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The American Bankers Association is the voice of the nation’s $17 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend more than $9 trillion in loans.