A group of banks and business organizations, including the Bank Policy Institute and the U.S. Chamber of Commerce, are suing the Federal Reserve over its annual bank stress tests.

The plaintiffs argue that the process lacks transparency and violates federal law by not allowing public input.

While they support stress testing, they claim the current process imposes inconsistent and unclear restrictions on bank capital.

The Fed recently announced plans to seek public feedback on changes to the stress tests, but the proposed adjustments may not address all concerns, CNBC has reported.

The banks have expressed frustration over the higher capital requirements, which they believe hinder economic growth.

Written by B.C. Begley