Tashkent, Uzbekistan (UzDaily.com) — The largest banks in the United States have filed a lawsuit against the Federal Reserve (Fed), challenging the legality of the annual stress tests conducted to assess the resilience of financial institutions to economic shocks, Reuters reported.

According to Finam, the plaintiffs, including the Institute for Banking Policy, the American Bankers Association, and the U.S. Chamber of Commerce, argue that the Fed is violating administrative procedures by conducting stress tests without proper transparency and without allowing public discussion of the models and scenarios used.

In response to the lawsuit, the Fed announced its intention to make changes to the stress-testing process to enhance transparency and align it with new legal requirements, according to Interfax.

This lawsuit reflects growing dissatisfaction among banks over the lack of transparency in regulatory procedures and a push for more open interaction with the Fed. The court’s decision could significantly impact how banks' resilience is assessed and capital requirements in the future.