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.
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Key Dates
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