The Federal Reserve wants banks to find better ways to decide how much money they need in a financial crisis. The Federal Reserve released a report on Monday which said banks have done well in terms of preparing for financial struggles brought on by the 2008 financial crisis. However, they must start to plan for risks relating to their normal business activities.
Since 2009, the Federal Reserve has been conducting stress tests on banks to study how prepared the banks are for a crisis. The next test will occur next year and will involve the 18 largest banks and 12 firms participating for the first time.
