The Fed said it is weighing changes to bank tests for systemic risk.

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The Federal Reserve is weighing “significant changes” in its annual stress tests for large U.S. banks, reducing the volatility of test results and making the process more transparent.

The Fed did not provide details of the changes, but said it could improve models that calculate estimated losses for banks, show average results over two years to reduce the risk of year-to-year fluctuations and allow the public to comment on estimates. Every year before conditions are fulfilled.

The Fed said the goal of the changes was not to have a “material impact on overall capital levels”.

The federation said in a statement that “the framework of administrative law has changed a lot in recent years.” “The Board has analyzed the current stress test in the light of the revised legal landscape and decided to modify the test in the areas necessary to improve its resilience.”

According to the federation, the amendment is a response to recent changes in the administrative law framework, which was revised earlier this year by the decision of the US Supreme Court to repeal the so-called “Chevron defense”. The ruling straddles the latitude of federal agencies’ craft rules and regulations.

The lack of transparency and uneven results have become frustrating areas for the banking industry. The Bank Policy Institute, an industry lobby group, welcomed the federal announcement as a step toward “transparency and accountability.”

The stress test is an annual exercise for major US banks, including JPMorgan Chase and Goldman Sachs. To calculate the appropriate capital requirement for each lender, their businesses are placed under a series of judgment day conditions. Capital is used to absorb potential losses.

In the year The challenge was crucial to restoring confidence in the banking sector following the 2008 financial crisis. However, it has lost much of its drama in recent years with banks that have easily exited hypothetical situations with sufficient capital. Bank executives have criticized the tests for producing too vague and too variable results.

At the beginning of this year, Goldman became the first American bank Challenge successfully The Fed passed the stress tests and capital requirements as a result.

The changes to stress testing could be another victory for the banking industry, which is already hoping for what has been described as a less onerous implementation. Basel III final game Capital rules in the second Trump administration.

The first plan for Basel reform was announced last year by Fed Vice Chairman Michael Barr, but it was scaled back in response to opposition from the banking industry. The final outcome will be influenced by the incoming Trump administration.