WASHINGTON, April 20 Federal Reserve Governor
Jerome Powell expressed support Thursday for removing the
qualitative standard applied by regulators to regular stress
testing of banks.
Powell said that applying a qualitative standard after the
financial crisis played a key role in getting banks to
understand their risks. But as banks have improved their books
after the financial crisis, the need for that part of the
regular stress test has lessened.
"We’ve seen a great deal of progress," he said. “I do think
we’re getting to the point where qualitative supervision of risk
management can no longer be part of the stress test but will
return to being part of the normal supervision of firms."
(Reporting by Pete Schroeder; Editing by Chizu Nomiyama)