capital-requirements

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

The Federal Reserve Board finalized two rules to make its annual stress test more transparent and to smooth volatility in stress-test-driven capital requirements. The rules require annual public input on scenarios and model changes, adopt models for the 2027 test, update the global market shock for large trading banks, and mandate averaging of the two most recent tests when setting stress capital buffers beginning in 2028.