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U.S. Federal Reserve says will not fail U.S. banks on 'qualitative' grounds under 2019 stress tests

WASHINGTON, March 6 (Reuters) - The U.S. Federal Reserve said on Wednesday it would no longer flunk banks based on operational or risk management lapses during its annual health check of the country's domestic banks.

The "qualitative" portion of the 2019 test will still apply to the U.S. subsidiaries of five foreign banks subject to the annual exam, however. (Reporting by Pete Schroeder Editing by Sonya Hepinstall)