The Federal Deposit Insurance Corporation published the hypothetical economic scenarios that covered institutions must use in the upcoming 2026 stress tests, applying to firms with total consolidated assets of more than USD 250 billion. The supervisory scenarios comprise baseline and severely adverse paths. The baseline is aligned with a survey of private sector economic forecasters, while the severely adverse scenario is a hypothetical designed to assess institutions’ strength and resilience rather than a forecast. Each scenario includes 28 variables spanning domestic and international activity, including gross domestic product, unemployment, stock market prices, and interest rates. The FDIC noted that the Dodd-Frank Act requires certain financial companies, including certain state nonmember banks and state savings associations, to conduct stress tests, and that Congress raised the covered-institution asset threshold from USD 10 billion to USD 250 billion in 2018; the FDIC also coordinated scenario development and distribution with the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency.
Federal Deposit Insurance Corporation 2026-02-12
Federal Deposit Insurance Corporation releases 2026 economic scenarios for stress tests of institutions above USD 250 billion
The Federal Deposit Insurance Corporation released the 2026 stress test scenarios for institutions with over USD 250 billion in assets, featuring baseline and severely adverse paths. These scenarios, developed in coordination with the Federal Reserve and the Office of the Comptroller of the Currency, include 28 variables to assess financial resilience, as mandated by the Dodd-Frank Act.