- Goldman Sachs' Harvey Schwartz said his firm supports stress testing.
- The first part of stress test results are scheduled to be released at 4:30 p.m. ET on Thursday.
Harvey Schwartz, Goldman Sachs president and co-COO, said stress testing is an important part of the business.
"We're big supporters of stress testing. The way that we think about risk management, it's been a critical part of our toolkit," Schwartz said on CNBC's "Closing Bell" on Thursday.
He said, however, that the Federal Reserve's current standards are "quite high."
The tests are part of the Dodd-Frank Act reforms implemented after the financial crisis. Their goal is to evaluate the current strength of the banking system and determine how financial institutions would hold up, should they experience substantial losses.
Schwartz said it'll be interesting to see whether the market focuses on the results or the regulatory path ahead, amid anticipation of deregulation under the current administration.
"Before the [financial] crisis, there wasn't enough regulation," Schwartz said. "Now, there's been a lot of regulation and the real question is 'Has the pendulum swung too far?' and how do we calibrate so that it better supports economic growth?'"
The first part of stress test results are scheduled to be released at 4:30 p.m. ET on Thursday. The second part is due next week.