The Fed is requesting comments on proposals to enhance the transparency and public accountability of its annual stress test. The proposals seek comment on: the stress test models; changes to the framework that guides the design of the hypothetical scenarios; and the hypothetical scenarios for the upcoming 2026 stress test.
The proposals request comment on several other elements, including an enhanced disclosure process for future stress test cycles, adjustments to the annual timeline to accommodate a comment period for scenarios, and enhancements to reporting forms to reduce burden and improve risk capture.
The Federal Reserve conducts stress tests to ensure that large banks are sufficiently capitalized and able to lend to households and businesses even in a severe recession. In December 2024, the Board announced it would modify the test in important respects to improve its resilience. Comments on the 2026 scenarios are due by December 1, 2025. Comments on the proposal enhancing model and scenario transparency are due by January 22, 2026.
Read more
Federal Reserve Board requests comment on proposals to enhance stress test
The Fed is requesting comments on proposals to enhance the transparency and public accountability of its annual stress test. The proposals seek comment on: the stress test models; changes to the framework that guides the design of the hypothetical scenarios; and the hypothetical scenarios for the upcoming 2026 stress test.
The proposals request comment on several other elements, including an enhanced disclosure process for future stress test cycles, adjustments to the annual timeline to accommodate a comment period for scenarios, and enhancements to reporting forms to reduce burden and improve risk capture.
The Federal Reserve conducts stress tests to ensure that large banks are sufficiently capitalized and able to lend to households and businesses even in a severe recession. In December 2024, the Board announced it would modify the test in important respects to improve its resilience. Comments on the 2026 scenarios are due by December 1, 2025. Comments on the proposal enhancing model and scenario transparency are due by January 22, 2026.
Read more
Categories
Most Recent Posts