Executives at many big banks have made progress in preparing for major financial shocks, but other firms are still falling behind, Michael Crittenden with the Wall Street Journal reports.

As a result, he says, the Federal Reserve is raising the bar:

Regulators want executives to be able to better identify the specific risks their bank faces and be able to explain how those dangers are being accounted for when deciding how much capital to hold or distribute to shareholders through dividends or buybacks.