Tarullo on Changing Post Stress Test Capital Requirements

The transcript discusses changes to the stress test system for banks, focusing on increasing capital requirements for the eight largest US institutions. This includes maintaining minimum capital levels and adding a capital surcharge. The aim is to enhance resilience against systemic risks, especially for large banks. The discussion also covers the need to account for unknown risks and the timing of implementing these changes, with a phased approach being considered.

What changes are being proposed regarding the capital requirements for the eight largest US institutions after stress losses?

What factors contribute to the need for a capital surcharge on the largest institutions?

Why is it important for the eight most systemically important institutions to be more resilient than other banks?

How does the Federal Reserve plan to adjust the stress test requirements in the future?

What considerations are there regarding the timing of the proposed changes to the stress test requirements?