Small Banks Exempt From Stress Tests, Regulators Say

Law360, New York (May 14, 2012, 12:59 PM EDT) -- Responding to concerns from community bankers, federal regulators made clear Monday that banks with $10 billion or less in consolidated assets would not have to perform stress tests required under the Dodd-Frank Act.

The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency also sent out guidance to larger banks outlining how they should design their own stress tests, even though the rules for such tests are still being finalized.

The guidance says banks need to tailor a flexible...
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