The elimination of the "qualitative" portion of the annual tests eases some of the post-crisis regulatory burden on banks.
The answer is unequivocally no, according to noted bond analyst Christopher Whalen, who calls them "a monumental waste of time and money."
Whatever fate is in store for the Dodd-Frank Act, the systems financial institutions put in place to comply with the law should provide ongoing advantages.
“The process of maturation that makes stress test results more predictable may also make the stress tests less effective," say two researchers.
