U.S. FEDRegulation
Federal Reserve finalizes averaging of stress-test results to set capital buffer requirement
The Federal Reserve Board adopted a final rule (91 FR 62636) changing how it sets the stress capital buffer for large bank holding companies, savings and loan holding companies, U.S. intermediate holding companies of foreign banks and supervised nonbank financial companies. The buffer will use the average of the maximum common equity tier 1 declines projected in the Board's prior two annual stress tests, and its annual effective date moves from Oct. 1 to Jan. 1.
Text (Federal Register) → · ABA Banking Journal
Key points
- The rule takes effect Dec. 1, 2026; the Board said averaging is meant to reduce volatility in the buffer requirement.Federal Register
- The rule amends Regulations Y, LL and YY and changes the FR Y-14A/Q/M reports.Federal Register
- ABA Banking Journal reported the averaging will take effect in 2028; the Federal Register lists the rule as effective Dec. 1, 2026.Federal RegisterABA Banking Journal
- The extra quarter gives firms more time to comply with the recalculated requirement.Federal Register
Sources2 articles across 2 outlets
ABA Banking Journal
Federal Register