Perhaps there were some benefits to having overlapping approaches when we were still in the capital-building phase after the crisis. But now that banks have built significant capital stores, I believe the overlapping requirements should be combined for efficiency and simplicity. The Stress Capital Buffer (SCB) Proposal Last year, the Board issued a proposal to address these redundancies.
The proposal—known as the stress capital buffer—would simplify our regulatory regime by integrating the stress test with our non-stress capital rules. I believe the SCB proposal stands as a good example of how our work can be done more efficiently and effectively, and in a way that maintains the resiliency of the financial system.