Fed's Tarullo: Bank stress tests should become a culmination a of year-round supervision

FXStreet (Łódź) - Fed governor Daniel Tarullo, who spoke in Boston on Wednesday, called for improved capital planning by banks, as their boards and management were seen not attaching enough weight to risk oversight.

The stress tests should become “a culmination of year-round supervision” instead of a once-annual event, the Fed official said, adding that they were not a finished product yet and that a Fed panel would assess the progress in fixing the possible flaws.

The stress test committee “will directly engage with firms during the course of the year to evaluate progress in remediating weaknesses or other issues identified,” Tarullo informed.