In American Banker, Jarryd Anderson Discusses the Fed's Tailoring Initiative

American Banker quoted financial services group chair Jarryd Anderson in an article on the Federal Reserve's effort to reform the asset-size thresholds that decide which banks face stricter regulatory oversight. Fed Vice Chair for Supervision Michelle Bowman has said the central bank will put forward a proposal by the end of the year to raise those thresholds.

Jarryd said that whatever changes emerge, banks should be cautious before scaling back compliance work they have done to prepare for the next regulatory tier. He said they should weigh the immediate cost of compliance against how hard it could be to restart those programs if the policy pendulum swings back

Jarryd also encouraged banks to see the value of stress testing and resolution planning even when those practices aren't required, "These are good exercises for any bank, whether or not they're required by regulation. It's good housekeeping, good hygiene. Banks recognize that, which is why many of them run their own internal stress tests," he said.