Exclude internal stress tests from CCAR, says US auditor
US Government Accountability Office says internal tests weaken incentives for banks to create 'meaningful and severe stress tests'
A federal oversight body has recommended the US Federal Reserve exclude bank-run stress tests from assessments of capital adequacy under its Comprehensive Capital Analysis and Review (CCAR) programme.
The Government Accountability Office (GAO) – a Congressional agency charged with holding public bodies to account – recommends in a report that the Fed exclude stress-test results from a bank's proprietary stress scenarios under its CCAR assessment, to "help provide stronger incentives for
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