off-the-wire

Fed opts to keep bank capital buffers steady until 2027 as it mulls stress test tweaks

Kitco Media
By Reuters
Published:
Updated:
Reuters
Fed opts to keep bank capital buffers steady until 2027 as it mulls stress test tweaks teaser image

WASHINGTON, Feb 4 (Reuters) - The U.S. Federal Reserve announced on Wednesday it would not adjust large bank capital levels during the 2026 stress testing cycle, as the central bank considers several changes to the annual exercise aimed at boosting transparency.

Fed Vice Chair for Supervision Michelle Bowman said large banks' "stress capital buffers" will instead be revised in 2027, after the Fed has had a chance to identify any "deficiencies" in the models it uses to test large bank finances against a hypothetical economic downturn.

The Fed voted in October to make its testing models open to public feedback, as well as the scenarios they test banks against every year.

Reporting by Pete Schroeder; Editing by Chris Reese

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