Federal Reserve Board finalizes changes to enhance the transparency and public accountability of its stress test and reduce volatility in its stress test-related capital requirements

Why this matters

This is a final rule release from the Federal Reserve Board finalizing two substantive modifications to the supervisory stress test framework and stress capital buffer requirements. The changes impose new obligations on large banks: annual public input on scenarios, averaging of stress capital buffer results over two years, and revised global market shock testing. The rules are binding and will take effect in 2027–2028. The update directly affects capital planning and prudential requirements for systemically important banks, making it a high-significance regulatory action with concrete compliance timelines.

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