WASHINGTON (Reuters) - Bank of America has produced a satisfactory update of its capital plan, the Federal Reserve announced on Thursday, saying the U.S. bank had made progress strengthening its “loss and revenue modeling practices and its internal controls.”
In March, Bank of America passed the Fed’s annual “stress test” of its health and ability to withstand a major financial crisis, but the central bank asked it to file its plan again and address “certain deficiencies in its capital planning processes.”
The bank must continue to make steady progress toward sound risk-management and planning on a level with “the size and complexity of its operations and systemic importance,” the Fed said on Thursday.
The Fed’s annual evaluations, known as stress tests, started in 2009 when many of the largest U.S. banks were struggling to repay taxpayer bailout funds they took after the collapse of Lehman Brothers a year earlier. The tests give regulators a sense of the banks’ health and their resilience in the face of another crisis.
Reporting by Jason Lange and Lisa Lambert; Editing by Chizu Nomiyama and Frances Kerry