The U.S. Federal Reserve Board on Monday invited public comment on a proposed rule to modify its capital planning and stress testing rules for bank holding companies for the 2017 cycle.
Among other things, the proposed rule would remove certain large, non-complex firms from the qualitative assessment requirements under the Comprehensive Capital Analysis and Review (CCAR) process.
The proposed rule would reinforce the Fed’s less stringent expectations for firms that are generally engaged in traditional banking activities, and represent less of a systemic risk. They would also reduce certain reporting requirements for these firms.
Firms that are excluded from the qualitative component of the CCAR process would still have to adhere to the quantitative requirements.
Additionally, the proposed rule would decrease the amount of capital firms that are subject to the quantitative requirements of CCAR can distribute to shareholders without Fed approval.
Comments on the proposed rule are due by Nov. 25.