The Federal Reserve is proposing a rule that would exemptbanks with less than $250 billion in assets and do not have significantinternational or nonbank activity from the qualitative portion of theComprehensive Capital Analysis and Review, Fed Gov. Daniel Tarullo said in aspeech Sept. 26.

The Fed is looking to implement the change in the 2017 roundof CCAR, he added.

"We do not intend for less complex firms to invest instress testing capabilities on par with the most complex firms and, given theirprofile, we feel these firms can maintain the progress they have made throughthe normal supervisory process, supplemented with targeted horizontal reviewsof discrete aspects of capital planning," Tarullo said, according to acopy of his prepared remarks.