During the crisis, disclosure was intended to help restore confidence in the banking system. Our continuation and expansion of disclosure helps market participants, analysts, academics, and the public better evaluate both the condition of the banks and the rigor of supervisory oversight. It thus serves the dual purpose of market discipline and government agency accountability.
To serve its important financial stability purpose, stress testing must never become static. As the financial system evolves, with the creation of new products and new correlations among asset price movements, the supervisory model must account for these changes. And as salient risks to the financial system arise, the scenarios must test for these new risks.