Fed set to raise bar for US stress tests

As US regulators prepare to introduce new stress-testing requirements for medium-sized banks, the Fed warns that the largest are still struggling to meet existing standards – and the intent of future stress tests is likely to be dramatically different

Within the next few weeks or months, the US Federal Reserve will release the details of a new set of stress tests. Under rules designed in 2012 to implement the Dodd-Frank Act, the requirement to produce multi-quarter predictions of the response to adverse stress scenarios will be extended down to medium-sized US banks, as well as the 18 largest, which have been subject to the requirement since