meta_id 3539988

On September 30, 2026, the US Federal Reserve Board (FRB) announced two final rules implementing changes to its supervisory stress test framework designed to enhance transparency, public accountability and reduce volatility in stress test-related capital requirements for large banks. The two final rules were adopted in a manner largely consistent with corresponding proposals issued in October 2025. The first final rule , effective 30 days after publication in the Federal Register , requires the FRB to invite public input annually on stress test scenarios and material model changes. It also updates the framework guiding hypothetical scenario design, as well as adopting models for the 2027 edition of the stress test. Additionally, this rule adjusts the stress test calendar and modifies the global market shock component (i.e., a set of shocks applied to banks with large trading books). Under the rule's new approach, banks will be tested against two global market shock components annually, with the FRB using the shock producing the largest losses for each firm to calculate ultimate stress test results. The second final rule , effective 60 days after publication in the Federal Register , requires the FRB to average stress capital buffer requirement results from the two most recent annual supervisory stress tests for firms subject to stress testing in both years. This rule stipulates that the FRB will begin averaging requirements in 2028 to ensure only models incorporating public input are used in these calculations. Concurrently, the FRB is requesting comment on a proposed rule to revise its non-interest income model to better capture business model diversity across banks. If adopted, the proposed rule would replace the current model projecting each bank's fee income under stress. According to the FRB, these changes are expected to reduce year-over-year volatility in capital requirements by approximately 50 percent, and are not expected to materially affect aggregate capital requirements. Interested parties may submit comments on the proposed rule up to 60 days after publication in the Federal Register at this link .