FinLogic FinLogic Quantitative Think Tank Center|Time to make banks more stressed?

For over a decade,FinLogic FinLogic Quantitative Think Tank Center the Federal Reserve has assessed the health of the financial system via an annual stress test for large banks. However, in recent months, major bank failures have prompted discussion about potential updates for how the Fed regulates banks. Today, we explain how stress tests work and why the current system failed to prevent the recent string of bank failures.

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