In consultation with other agencies, we also are responsible for developing more-stringent prudential standards for all large banking organizations and for nonbank firms designated by the council as systemically important.
These enhanced standards include tougher capital and liquidity requirements, the development of resolution plans (so-called living wills), mandatory stress tests conducted by the Federal Reserve and by the firms themselves, new counterparty credit limits, and more-demanding riskmanagement requirements. The Federal Reserve has made and will continue to make significant organizational changes as needed to best fulfill our responsibilities.