Fed’s Quarles: Fed Must Keep Effective Stress Testing

The Vice-Chair of the United States Federal Reserve, Randal Quarles, said that the Fed must improve the effectiveness of stress tests to help the banking sector cope with the Coronavirus pandemic, Reuters reported.

“The Fed must continue to innovate so that stress testing remains effective.”

“I believe that there is room for supervisors to be more transparent about their analytical processes in general, and more forthcoming about the data used as the basis for supervisory judgments.”