Stress Test Improvement Act of 2017

Bill 115 hr 4293, also known as the Stress Test Improvement Act of 2017, aims to make improvements to the stress testing requirements for financial institutions. The bill was introduced in the House of Representatives on November 7, 2017.

The main purpose of the bill is to provide relief to smaller financial institutions by exempting them from certain stress testing requirements. These smaller institutions, with total consolidated assets of less than $250 billion, would no longer be required to conduct stress tests under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Additionally, the bill seeks to improve the transparency and efficiency of stress testing by requiring the Federal Reserve to publish the models and methodologies used in the stress tests. This would allow for greater understanding and scrutiny of the stress testing process. Overall, the Stress Test Improvement Act of 2017 aims to strike a balance between ensuring the safety and soundness of the financial system while also reducing regulatory burden on smaller financial institutions. The bill has received bipartisan support in Congress and is currently under consideration in the House Financial Services Committee.