The Federal Reserve Board published proposals for public comment aimed at increasing the transparency and public accountability of its annual supervisory stress test, alongside a separate request for comment on the proposed hypothetical scenarios for the 2026 test. The transparency package covers disclosure of stress test models, changes to the framework used to design scenarios, and related elements of the stress testing process. The proposals also contemplate an enhanced disclosure process for future stress test cycles, adjustments to the annual timeline to accommodate a scenario comment period, and updates to reporting forms intended to reduce burden and improve risk capture. The Board noted that outcomes can vary materially year to year based on scenario design, but estimates that the proposed model and scenario changes would not materially change capital requirements in aggregate for firms subject to the supervisory stress test across various stress scenarios and starting test conditions. Comments on the 2026 scenarios are due by December 1, 2025, and comments on the proposal to enhance model and scenario transparency are due by January 22, 2026. The Board noted that Federal Register publication may be delayed due to the government shutdown.
Federal Reserve Board 2025-10-24
Federal Reserve Board seeks comments on stress test transparency proposals and the 2026 supervisory scenarios
The Federal Reserve Board has proposed enhancing transparency and accountability in its annual supervisory stress test, seeking comments on hypothetical scenarios for the 2026 test. Key elements include disclosing stress test models, adjusting the scenario design framework, and updating reporting forms to reduce burden and improve risk capture. The Board anticipates no significant changes to capital requirements for firms despite potential outcome variations based on scenario design.