Fed Directs Big Banks To Include New Capital Rules In Stress Tests

The Federal Reserve wants big banks to incorporate new Basel III rules into their annual stress tests starting this year. As reported earlier, top U.S. banks are required to hold twice as much equity capital as required under a new rule launched by U.S. regulators on July 9. The rules are intended to protect taxpayers from any future costly bailouts. Rules will apply to large banks The Fed’s new rule would apply to bank holding companies with $50 billion or more in total consolidated assets. The rule clarifies that in the next capital planning and stress testing cycle, these companies…