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[BUSINESS] · United States · 10 sources

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Federal Reserve finalizes new bank stress test rules

Federal Reserve bank stress tests capital requirements banking regulation financial stability

The Federal Reserve has finalized two new rules aimed at reforming its annual stress tests for large banks. The changes are designed to increase transparency, enhance public accountability, and reduce the year-to-year volatility of capital requirements.

Under the first rule, the Fed will now be required to seek annual public input regarding stress test scenarios and any significant changes to the models used. The framework for designing hypothetical scenarios has also been updated, with specific models already designated for the 2027 stress tests. Additionally, banks with large trading portfolios will face two different global market shock components annually, with the results based on the scenario that produces the highest loss.

The second rule addresses the Stress Capital Buffer (SCB). Starting in 2028, the Fed will calculate these requirements by averaging the results of a bank’s two most recent annual supervisory stress tests. This move is expected to reduce the volatility of capital requirements by approximately 50% without significantly altering the total aggregate capital held by the banking system.

While Fed Vice Chair for Supervision Michelle Bowman stated the changes preserve resilience by being more transparent and risk-sensitive, the decision was not unanimous. Governor Michael Barr expressed opposition, arguing that the new rules could reduce the rigor and credibility of the tests, potentially undermining financial stability.

Entities

Banco de Portugal · Federal Reserve · Michael Barr · Michelle Bowman · Wall Street · Álvaro Santos Pereira

Claims

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Sources

La Fed aprueba cambios en sus test de estrés bancario para reducir volatilidad del capital [eldinero.com.do]
Fed, bankaların stres testine yönelik değişiklikleri nihai hale getirdi [www.borsagundem.com.tr]
ΗΠΑ: Η Λόγκαν της Fed ανοίγει ξανά τη συζήτηση για επιτόκια [www.sbctv.gr]
Fed'den bankalara yeni sermaye hamlesi: Stres testlerinde kurallar değişiyor [www.cnbce.com]
La Fed vota a favor de modificar los test de estrés para los bancos ante las reclamaciones del sector [www.diarioestrategia.cl]
Novas regras do Fed reduzem volatilidade de capital [www.spacemoney.com.br]
BC dos EUA encerra alterações para elevar transparência e responsabilidade de teste de estresse | TNOnline [dev.tnonline.com.br]
U. S. Fed Overhauls Bank Stress Tests To Curb Capital Swings And Make Results More Predictable [www.tekedia.com]
Fed finalizes new stress test rules [bankingjournal.aba.com]
Fed: Νέα εποχή στα stress tests των τραπεζών με πιο χαλαρούς κανόνες για τη Wall Street | Ειδήσεις για την Οικονομία [www.newmoney.gr]