Transparency Transparency of the stress test and its inputs and outputs is key to the credibility of the stress test, and there are several initiatives underway to provide additional transparency regarding the supervisory stress test models and scenario design process.
We believe that the adjustments under development strike the right balance of advancing transparency, while maintaining incentives for firms to think critically about their own risks. I expect that soon you will see the Federal Reserve issue a policy statement describing governing principles around the supervisory stress testing process.