Fed's Bowman says overhaul of bank stress test will make process more transparent

The push to complete the stress testing overhaul will be a major step in Bowman's efforts to transform, and in many cases ease, capital requirements imposed on banks. She added in her remarks that she expects the Fed will wrap up work on a pair of major capital rules by the end of the year: the so-called Basel rules on risk-based capital and a revamp of the additional capital charge applied to globally systemic banks, which the Fed anticipates will lower the capital large banks are required to hold in reserve.

The Federal Reserve's top regulatory official said on Friday the US central bank will soon finalize an overhaul of its "stress test" of big banks to make the process more transparent and the results more predictable for lenders, handing the industry long-sought reforms to the exam process.