CFO: Are Banks’ Stress Tests Too Cloudy for Treasurers?
The proposed annual stress tests of the largest U.S. banks may not be very useful for CFOs trying to assess the health of financial institution, reported CFO staff writer Vincent Ryan.
The Federal Reserve and the FDIC are moving forward on requiring annual stress tests of the largest U.S. banks. Outside of the biggest banks and regulators, though, it’s unclear whether the stress tests will be of any informational value to anyone else – corporate bank customers and their treasury departments included. That’s because the data released publicly may not be institution-specific or detailed enough to be meaningful in a risk assessment, said Mark Zandi, chief economist for Moody’s Analytics.
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