Fed’s rush to complete stress buffer likely to unnerve banks
Quarles wants to include it in 2020 CCAR cycle, making bank capital planning difficult
The US Federal Reserve’s plan to introduce its proposed stress capital buffer in time for the next stress-test cycle, potentially as early as February, is likely to cause sleepless nights for bank capital managers, experts warn.
“The mechanics of how it will work, running scenarios and putting in processes takes time. It takes education in the firm that will affect decision-making. So it has to be really clear, carefully scripted and the timing reasonable – otherwise, it will be very hard for
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