Fed Vice Chair of Supervision Bowman does not comment on monetary policy; Fed supervisors should have known about SVB vulnerabilities as early as March 2022, more than a year before the bank's failure

Supervisory delays were not due to deregulatory efforts pursued earlier by the Fed. Culture of risk aversion among Fed supervisors led to inaction, compounded by a lack of clarity regarding decision rights. Fed supervisors did not take prompt and decisive action to require SVB to reduce vulnerabilities. Changes will make tests more reliable and reduce volatility in bank capital requirements. Fed will finalize reforms to make stress tests more transparent and accountable in the coming weeks Revised stress tests will provide detailed information on testing models and scenarios. Going forward, will average bank's last two stress tests in assigning the lender's stress capital buffer. Expects Fed to finalize basel bank capital rules and changes to the GSIB surcharge before the end of this year. Fed plans to utilize stress testing in an expanded capacity to privately inform Fed's supervisors on bank risks.