One year after annual stress testing requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act became effective for banks with more than $50 billion in assets, the next phase of testing looms. And this time, it will apply to a large new subset of financial institutions.
Starting this fall, smaller banks with $10 billion to $50 billion in total consolidated assets will be subject to the stress tests. Although generally referred to as “bank stress testing,” the exercise applies to all bank and savings-and-loan companies, national banks, state member banks, state nonmember banks, federal savings associations and chartered savings associations.
