OCC Amends Stress Test Rule

On Thursday, October 3, 2019, the OCC issued a final rule implementing the stress testing requirements of section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, consistent with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection Act.

 

The new rule is effective as of Nov. 24, 2019, and revises:

  • the minimum threshold for national banks and federal savings associations to conduct stress tests from $10 billion to $250 billion;
  • the frequency by which certain national banks and federal savings associations are required to conduct stress tests.

 

The rule also reduces the number of required stress testing scenarios from three to two and makes certain additional technical changes to the stress testing requirements.

 

A full copy of the final rule is available here.