# Federal Reserve Finalizes Stress Test Rules

On September 30, 2026, the Federal Reserve Board finalized two rules to increase transparency in supervisory stress testing and reduce year-over-year volatility in stress-test-related capital requirements. The changes are expected to reduce that volatility by approximately 50% without materially changing aggregate capital requirements. The Board also proposed a noninterest-income model change for its 2027 stress test, with comments due 60 days after publication in the Federal Register.

- Banks and firms advising on stress testing, capital planning, and risk models can assess how the finalized changes affect their work and provide input on the proposed 2027 model change.
- The comment deadline runs from Federal Register publication; stakeholders should use that publication date to determine the submission deadline.

**Jurisdictions:** federal
**Topics:** Regulatory Compliance, Policy
**Published:** October 17, 2026

### Government Entities
- Federal Reserve Board (Federal Reserve)

### Key Quotes
> The stress test is an essential component of our regulatory capital framework. Today's changes preserve its resilience by ensuring that it is transparent, granular, and risk-sensitive. The public will now have greater assurance that the risks banks take will be reflected appropriately in their stress test losses and their capital requirements.
> — Michelle W. Bowman, Vice Chair for Supervision, Federal Reserve Board

### Sources
- [Federal Reserve Board - Federal Reserve Board finalizes changes to enhance the transparency and public accountability of its stress test and reduce volatility in its stress test-related capital requirements](https://www.federalreserve.gov/newsevents/pressreleases/bcreg20260930a.htm) - Federal Reserve