Enhanced Transparency and Public Accountability of the Supervisory Stress Test Models and Scenarios; Modifications to the Capital Planning and Stress Capital Buffer Requirement Rule, Enhanced Prudential Standards Rule, and Regulation LL

Why this matters

This is a final rule (effective November 2, 2026) from the Federal Reserve amending Regulations Y, LL, and YY. It mandates annual disclosure of stress test models and scenarios, establishes new processes for material model changes, modifies the stress capital buffer requirement framework, and revises comprehensive data collection requirements. The rule affects bank holding companies with $100B+ in assets and nonbank financial companies supervised by the Board, representing a significant expansion of transparency obligations and operational requirements for large financial institutions. The comprehensive nature of the amendments—spanning model disclosure, scenario design, capital planning timelines, and reporting—and the binding nature of the final rule justify a significance score of 5.

AI-generated classification rationale, not a full analysis. Verify with the original Federal Reserve source before acting. Full disclaimer.