Beverly Hirtle: Structural and cyclical macroprudential objectives in supervisory stress testing Remarks by Ms Beverly Hirtle, Executive Vice President and Director of Research of the Federal Reserve Bank of New York, at the conference "The Effects of Post-Crisis Banking Reforms", Federal Reserve Bank of New York, New York City, 22 June 2018. * * * Good morning. It is my pleasure to make the opening remarks at this conference on post-crisis regulatory reform in the banking industry. It’s exciting to see such a distinguished group of researchers and supervisors in the room, all focused on developing a deeper understanding of the effects of the many significant regulatory changes that were put in place in response to the global financial crisis. I hope that the day is filled with productive discussion and debate. And, before I continue, I want to note that my comments today reflect my own views and not necessarily the views of the Federal Reserve Bank of New York or the Federal Reserve System. We are approaching the ten-year anniversary of the worst financial crisis in generations. Many regulatory and supervisory reforms have been made since, including changes to regulatory capital requirements, the introduction of new liquidity requirements, the redesign of the supervisory program for systemically important banks by the Federal Reserve’s Large Institution Supervision Coordinating Committee (LISCC), the introduction of the Comprehensive Capital Analysis and Review (or CCAR) program, requirements about recovery and resolution planning, and myriad other regulations under the Wall Street Reform and Consumer Protection Act (DoddFrank Act).
Such information, and a minimum level of forecasting capabilities, are in fact necessary for the fulfilment of all the tasks of a central bank, particularly for the maintenance of financial stability and the formulation of monetary policy. Central banks of accession countries will therefore assume statistical reporting obligations towards the ECB as soon as they become members of the ESCB, that is upon EU accession, although these obligations are less onerous than those which apply to euro area members. This future obligation should not pose any difficulty for the Central Bank as the existing legislation already gives it the power to access information directly and to publish it. In addition to these enabling powers, however, the Bank must also be equipped with the necessary technological and operational infrastructure and communication facilities to enable it to receive  BIS Review 8/2003  3  information from reporting agents and to forward it to the ECB. It must also ensure that the relevant information follows the agreed methodology. Recognising this future obligation, the Central Bank almost three years ago established a broad-based representative committee to identify the changes required in the way monetary and financial statistics are classified and reported. This work has been completed and the reporting forms have been updated accordingly. To facilitate the collection of this information, moreover, a common database is being established between the Bank and the Malta Financial Services Authority.