By Pete Schroeder
WASHINGTON (Reuters) - Large banks should still submit the capital plans they have drawn up for the Federal Reserve's annual stress tests by the original April 6 deadline, the central bank said on Tuesday.
In a statement, the Fed said those plans will be used to "monitor how firms are managing their capital in the current environment."
At the same time, the Fed said it will give banks more time to address non-critical examiner issues and will temporarily reduce examination activities at banks. Instead, the Fed is currently focused on bank outreach to make sure firms can manage the challenge and risks brought on by the pandemic.
"The Board recognizes that the current situation is significantly affecting areas of the country in different ways and will work with financial institutions to understand the specific issues they are facing," the Fed said in a statement.
The supervisory adjustments from the Fed mark the latest in an ongoing effort by U.S. bank regulators to assure banks in recent days that their overarching priority is ensuring firms continue to lend through the economic downturn, and not catching firms in foot-faults.
Earlier in March, European Union banking regulators delayed this year's stress test and eased some capital rules to avoid lenders turning off the taps over the coronavirus threat.
The Fed is currently scheduled to assess the capital plans for 34 large banks, with results published on June 30.