Stress Test Details Expected

Regulators are expected to release additional details on the industry's stress tests next week, according to sources.

On April 24, federal regulators will publish a paper on the methods used to carry out the stress tests to provide transparency to the process.

They are aiming to release the preliminary results of the tests on May 4.

The Treasury announced the tests of the 19 largest banks receiving rescue funds as a means of gauging a bank's capital position under adverse economic conditions.

If the agency determines that a bank needs additional capital to lend in such an environment, the institution will have six months to find the capital in the private market or access it from the government.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER