Large Bank Examination Workshop February 2026

Basel III and Stress Testing “Stress testing plays an important role in: • Providing forward-looking assessments of risk; • Overcoming limitations of models and historical data; • Supporting internal and external communication; • Feeding into capital and liquidity planning procedures; • Informing the setting of a banks’ risk tolerance; and • Facilitating the development of risk mitigation or contingency plans across a range of stressed conditions.”

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The Dodd-Frank Act • In July 2010, the Dodd-Frank Act was passed • Most comprehensive financial reform legislation since the Great Depression • It addresses six different categories of regulation

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