Federal Reserve Announces Maintenance of Capital Requirements for Large Banks Until 2027

Odaily News 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 this annual test to enhance transparency. Federal Reserve Vice Chair for Supervision Michael Bowman stated that the stress capital buffer requirements for large banks will be postponed until 2027 to allow the Fed sufficient time to evaluate potential flaws in its testing models when assessing banks' financial conditions under simulated economic recession scenarios. Previously, in October of last year, the Federal Reserve voted to open its testing models for public comment and will also disclose the stress scenarios used annually to test banks.