U.S. FEDRegulation
Federal Reserve finalizes stress-test transparency rule requiring annual public comment on models and scenarios
The Federal Reserve Board on Sept. 30 adopted a final rule amending Regulations Y, LL and YY to open its annual bank stress tests to public comment. The Board will publish its stress-test models and scenarios each year, invite comment on material model changes, and respond to substantive comments before implementing them. The rule takes effect Nov. 2, 2026, under 91 FR 62870 (Oct. 2, 2026).
Text (Federal Register) → · ABA Banking Journal
Key points
- The Board kept the Dec. 31 jump-off date; proposed scenarios will be published for comment by Jan. 10 of each stress-test year.Federal RegisterABA Banking Journal
- It finalizes the models for the 2027 stress test and revises the FR Y-14A/Q/M data collection.Federal Register
- The global market shock component for firms with large trading books will use two scenarios on a single date.Federal RegisterABA Banking Journal
- Governor Michael Barr dissented, saying the rule will reduce the stress test's dynamism, rigor, conservatism and credibility.ABA Banking Journal
- Industry groups including the American Bankers Association and the Bank Policy Institute had sued over the framework's opacity.ABA Banking Journal
Sources2 articles across 2 outlets
ABA Banking Journal
Federal Register