U.S. Markets

Federal Reserve to re-examine U.S. bank stress tests at July conference

FILE PHOTO: The Federal Reserve building is pictured in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File Photo/File Photo

WASHINGTON (Reuters) - The Federal Reserve announced on Monday it would hold a conference in July to discuss the effectiveness of its stress tests for large banks, as the U.S. central bank considers changes to the critical post-financial crisis tool.

The conference, to be held July 9 at the Federal Reserve Bank of Boston, will focus on the “transparency and effectiveness” of the regular tests of bank books. Top Fed officials have said they are considering changes to the test, which has faced consistent criticism from banks that it is overly complicated and opaque.

“This outreach effort will help the public better understand how stress tests work and will help us learn how we can improve and refine the program,” said Randal Quarles, the Fed’s vice chair for supervision.

Reporting by Pete Schroeder; editing by Jonathan Oatis