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 changes to its stress testing framework for large banks, enhancing transparency and reducing volatility in capital requirements by approximately 50 percent. The changes require annual public input on stress test scenarios, update testing models for 2027, modify the global market shock component, and average results from recent tests when calculating capital buffer requirements starting in 2028.