The Federal Reserve announced that it will maintain capital requirements for large banks until 2027.
TL;DR
The Federal Reserve will keep capital requirements unchanged for large banks until 2027, delaying adjustments to allow time for evaluating stress test models and improving transparency in annual assessments.
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Odaily Odaily that the Federal Reserve announced on Wednesday that it will not adjust the capital levels of large banks during the 2026 stress test cycle, and is currently considering several reforms to the annual test to improve transparency. Federal Reserve Vice Chairman for Supervision Bowman stated that the stress capital buffer requirements for large banks will be postponed until 2027 to allow the Fed sufficient time to assess potential shortcomings in its testing models when simulating recessionary scenarios to examine bank financial conditions. Previously, in October of last year, the Fed voted to open its testing models to the public for comment and will also publish the annual stress scenarios used to test banks.