Agencies clarify supervisory expectations for stress testing by community banks

The following press release was published by the Board of Governors of the Federal Reserve System on May 14, 2012. It is reproduced in full below.

Three federal banking agencies Monday issued a joint statement to clarify expectations for stress testing by community banks--banks, savings associations, and bank and savings and loan holding companies with $10 billion or less in total assets. The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of Currency clarified that community banks are not required or expected to conduct the types of stress testing required of larger organizations.

Source: Board of Governors of the Federal Reserve System