Stress tests to include Basel III requirements
Banks phase in new rules
According to Reuters, banks are required to phase in the new Basel III capital rules in the next set of their financial health stress tests. The publication explains:
The central bank has adopted two so-called interim final rules, one for bank holding companies with $50 billion or more in total consolidated assets, and a second for groups with assets of $10 billion to $50 billion.
The group of bigger banks has to take Basel III into account in the next stress tests, which begins on Oct. 1, the Fed said. For most banks in the second group, there is a one-year transition period.