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Review of Comments and Summary of Changes to the Proposed Stress Test Models (PDF)

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Dodd-Frank Act Stress Tests 2027.

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Summary

For release at 9:00 a.m. The Federal Reserve Board on Wednesday finalized changes to enhance the transparency and public accountability of its stress test and reduce volatility in its stress test-related capital requirements. The Board conducts stress tests to ensure that large banks are sufficiently capitalized and able to lend to households and businesses even in a severe recession. "The stress test is an essential component of our regulatory capital framework," said Vice Chair for Supervision Michelle W. The first final rule requires the Board to invite public input annually on the stress test scenarios and any material model changes. It also updates the framework that guides the design of the hypothetical scenarios and adopts the models that will be used for the 2027 stress test.

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