Stress tests

Some believe that increased bank regulation is to blame for overall slower growth in commercial and industrial loans. Yet that assessment misses some important details.

In an interview, CEOs for midsize banks said they are hopeful for a bipartisan Dodd-Frank Act reform bill that eases regulatory requirements for institutions with assets of more than $10 billion.

In his annual letter to shareholders, M&T Bank chief Robert Wilmers laid out in compelling detail how government policies intended to protect American families have ultimately stymied economic growth.

Because the fates of banks and the communities they serve are so intertwined, the regulatory impacts borne by regional banks are inextricably linked to the repercussions experienced by their customers.

Pinnacle Financial wanted to be in high-growth markets. BNC Bancorp saw more regulatory burden looming and limited opportunities to sell itself. Those factors spurred what is currently the year's second-biggest bank deal.

Using stress tests as the capital benchmark in a reformed regulatory system could enable some forms of relief, but other rules should remain in place to ensure financial stability.

The recent decision by the Federal Reserve Board to exempt banks with less than $250 billion in assets from the qualitative aspects of the CCAR stress tests may be a sign of things to come, says Joo-Yung Lee, head of North American financial institutions at Fitch Ratings.

After questions arose after the 2016 Comprehensive Capital Analysis and Review stress test, the Fed said Thursday that it would not object to the bank’s resubmitted capital plan.

As banking leaders gain a more substantial policymaking role, they will have a greater impact if they stake out a clear position in favor of regulations that protect investors and depositors.

Congressional Republicans are weighing potentially broad changes to the stress test program, including alterations to the way the tests are performed and the consequences of failing them.