The Federal Deposit Insurance Corporation (FDIC) today announced it is considering changes to the implementation timeline for the annual capital-adequacy stress tests required by section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The changes under consideration would delay implementation until September 2013 for covered institutions with total consolidated assets between $10 billion and $50 billion.
Under a proposed rule approved by the FDIC Board of Directors on January 17, 2012, financial institutions with more than $10 billion in assets would have to conduct annual capital-adequacy stress tests. As proposed, the stress testing requirements would become effective immediately upon the issuance of a final rule. The proposed rule is still under consideration at this time.
The FDIC received a number of comments on the proposed rule, including on the immediate effective date of the testing. In response to the concerns, the FDIC is considering delaying the effective date of the rule to conduct the annual stress tests for institutions between $10 and $50 billion in assets. Specifically, the FDIC is considering a timeline under which covered institutions with assets from $10 to $50 billion would be required to conduct initial stress tests in accordance with the rule in late 2013. The delay would help ensure that all covered institutions have sufficient time to develop sound stress testing programs.
As part of efforts among the federal banking agencies to coordinate the implementation of Dodd-Frank stress test requirements, the FDIC has consulted on this proposed implementation delay with the Federal Reserve Board (Board) and the Office of the Comptroller of the Currency (OCC). The Board and OCC are considering similar changes to timelines included in their proposed rules implementing Dodd-Frank stress test requirements.
The final implementation timeline for all covered institutions will be specified in the final rule.
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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 7,309 banks and savings associations, and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-98-2012