Stress Testing and Capital Planning: The Federal Reserve’s Approach

Senior Examiner Christina Celi and Senior Analyst Anna Baram from the Federal Reserve Bank of San Francisco’s Capital Analysis Team held a discussion moderated by Foo Boon Ping, Managing Editor of The Asian Banker on the evolution of the U.S. Federal Reserve System’s stress test program since 2009, targets for the quality and level of capital needed by banks, the role of bank supervisors in setting those targets and requiring action to achieve them, and some of the high-level findings and “lessons learned” by the Federal Reserve in this ongoing supervisory process.