Smaller U.S. banks will be required to disclose the results of their first round of public stress tests in the next couple of weeks, U.S. banking regulators announced Tuesday.
The U.S. Federal Reserve Board, along with the other federal agencies that oversee the U.S. banks, reiterated the disclosure requirements that will accompany the stress tests being carried out by smaller banks (firms with total consolidated assets of between US$10 billion and US$50 billion.
For the first time this year, the results of the annual stress tests carried out by these companies will be disclosed to the public. The results must be disclosed by the companies between June 15 and 30.
Specifically, these firms will be required to disclose the types of risks included in the stress test; a summary of the methodologies used in the stress test; estimates of losses, revenue, and net income; estimated post-stress capital ratios; and an explanation of the most significant causes for the changes in regulatory capital ratios.
These exercises are being carried out by he companies themselves, they are not subject to the stress testing that is conducted by the regulators on the industry’s biggest players (those with more than US$50 billion in assets).
The company-run stress tests are hypotheticals, the regulators note, and are not intended to be forecasts; nor will the agencies will make any public statements about the results.