Fed to Spill Secrets on Bank Stress Tests: Public Gets a Peek Starting 2026
Published Date: 11/18/2025
Proposed Rule
Summary
Big banks will see clearer and more open stress tests starting in 2026! The Federal Reserve is making it easier for everyone to understand how banks handle tough money situations by sharing more info and asking for public feedback. This means smarter rules, less paperwork, and better ways to spot risks before they become problems.
Analyzed Economic Effects
6 provisions identified: 4 benefits, 0 costs, 2 mixed.
Annual publication of full model docs
The Federal Reserve will annually publish comprehensive documentation of the supervisory stress test models, including equations, variables, coefficients, assumptions, and limitations. The Board is publishing the 2026 model documentation on its website and will make such documentation available each year for public review.
Global market shock methodology updated
The Board proposes to simplify the global market shock methodology, provide more detail on how shock severities are determined, and widen the allowable as-of date window for the global market shock to improve risk capture. The global market shock component already applies to firms with aggregate trading assets and liabilities of $50 billion or more, or trading assets and liabilities equal to or greater than 10 percent of total consolidated assets.
FR Y-14 reporting changed to improve risk capture
The proposal would revise the FR Y-14A/Q/M reports by removing items no longer needed for the supervisory stress test and by collecting additional data to support the stress test models and improve risk capture. These reporting changes apply to firms that file FR Y-14 reports.
Scenario design guides added to policy statement
The Board would amend the Scenario Design Policy Statement to include detailed guides for additional macroeconomic and financial variables used in scenarios, aiming to increase predictability and transparency while retaining flexibility to address procyclicality. The guides would generally incorporate features similar to existing unemployment and house-price guides.
Public comment and response process
The Board will invite public comment annually on any material changes to stress test models and on the stress test scenarios, and it commits to respond to substantive public comments before implementing material model changes. For this proposed rule, comments must be received on or before January 22, 2026.
Jump-off date moved to September 30
To accommodate the annual comment process on scenarios, the proposal would shift the supervisory and company-run stress test jump-off date from December 31 to September 30. This changes the as-of date firms must use when running their company-run stress tests.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Related Federal Register Documents
2025-21626, Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank Holding Companies and Their Subsidiary Depository Institutions; Total Loss-Absorbing Capacity and Long-Term Debt Requirements for U.S. Global Systemically Important Bank Holding Companies
Big U.S. banks that are super important to the economy are getting new rules to keep them safer and stronger. These changes tweak how much money they must keep on hand and how they handle long-term debt, helping prevent financial trouble. The new rules kick in soon and could affect how these banks manage billions in assets and debt.
2026-15774, Regulatory Modernization and Relief for Mutual Holding Companies
The Board invites comment on a notice of proposed rulemaking (proposal) to modernize the regulatory framework applicable to mutual holding companies (MHCs), primarily through proposed revisions to Regulation MM (12 CFR part 239), which governs the formation, operations, activities, and conversion of savings and loan holding companies in mutual form. The proposal would amend Regulation MM by, among other things, eliminating certain dividend waiver requirements, reducing burden associated with conversions from mutual-to-stock form, revising certain post-conversion restrictions, eliminating the requirement that subsidiary holding companies of MHCs obtain federal charters, and revising and clarifying other provisions of the regulation. The proposal also would amend the capital rule (12 CFR part 217) to clarify that certain mutual capital instruments may qualify as regulatory capital and to codify model term sheets for mutual capital certificates as appendices to the regulation.
2026-15777, Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks; Bank Holding Companies
The Board is inviting public comment on proposed amendments to Regulation O, which governs loans by member banks to their insiders and insiders of their affiliates. The proposed amendments would update and modernize the regulation, increase transparency by clarifying requirements and incorporating existing interpretations, and promote efficiency by reducing regulatory burden. The proposed amendments also would incorporate existing statutory requirements that are not currently reflected in the regulation. Moreover, the proposed amendments would update several outdated dollar-based thresholds in Regulation O and index these thresholds going forward. In addition, the proposed amendments would address the application of Regulation O to member banks that lend to companies that are presumed to be controlled by large asset management companies through passive investment funds. Finally, the proposed amendments would revise and reorganize the regulation to streamline the text and make it more accessible.
2026-14373, Formations of, Acquisitions by, and Mergers of Bank Holding Companies
Some companies want to become bank holding companies or buy banks, and the Federal Reserve is checking their applications. If you have thoughts, you can send comments by August 17, 2026. This affects banks and their owners, and the process helps keep banking safe and fair.
2026-14064, Formations of, Acquisitions by, and Mergers of Bank Holding Companies
Some companies want to become bank holding companies or buy banks, and the Federal Reserve is reviewing their applications. If you have thoughts, you can send comments by August 12, 2026. This affects banks, their owners, and the public, with no direct costs but important changes in who controls banks.
2026-14060, Inflation Adjustments for Civil Money Penalties
The Federal Reserve announced that civil money penalties won’t go up in 2026 because inflation data wasn’t available due to a government shutdown. This means businesses and individuals facing these penalties will see the same amounts as in 2025. The freeze keeps things steady until new inflation numbers come in next year.
Previous / Next Documents
Previous: 2025-20204, Community Bank Licensing Amendments
The OCC wants to make it easier for smaller banks—those with less than $30 billion in assets—to get licenses for certain activities. These changes cut down on paperwork and speed up approvals, helping community banks focus more on serving their customers. If you’re involved with these banks, get ready to share your thoughts by January 20, 2026!
Next: 2025-20214, Tart Cherries Grown in the States of Michigan, et al.; Free and Restricted Percentages for the 2024-25 Crop Year
The USDA is proposing new rules for tart cherry growers in Michigan, New York, Pennsylvania, Oregon, Utah, Washington, and Wisconsin for the 2024-25 season. These rules set how many cherries can be sold freely and how many must be restricted to balance supply and demand, helping growers earn better money. Comments on this plan are open until December 18, 2025.