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The most senior financial regulator appointed by President Donald Trump has initiated a set of bank-friendly changes with his first major policy move by proposing revisions to stress tests that are loathed on Wall Street.

Randal Quarles, who was confirmed as the Federal Reserve’s head of supervision in October, announced a series of proposals on Thursday to increase the transparency of its stress-testing programme, which banks have long criticised as a “black box”.

The stress-testing regime was introduced following the last financial crisis as a pillar of the new Dodd-Frank regulatory regime, which Republicans and banks blame for stifling bank lending and economic activity.

Mr Quarles, vice chairman for supervision, said in a statement: “This enhanced transparency will bolster the credibility of our stress tests and help the public better evaluate the results. The proposed changes will also generate valuable insight from stakeholders and we look forward to it.”

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