On September 30, the Fed finalized two rules addressing the transparency and public accountability of its supervisory stress test and reducing year-over-year volatility in stress test-related capital requirements.

The first rule, proposed in October 2025 (previously covered by InfoBytes here) and effective November 2, requires the Fed to annually publish comprehensive stress test model documentation and invite public input on proposed scenarios and any material model changes before implementation. The final rule retained the existing December 31 stress test jump-off date, adjusted the annual stress test calendar — including moving the capital plan submission deadline to April 30, final scenario disclosure to February 28, and the final stress capital buffer requirement notification to September 30 — and updated the global market shock component. The second rule, proposed in April 2025 and effective December 1, requires the Fed to average the stress capital decline component from the two most recent annual supervisory stress tests when calculating a firm’s stress capital buffer requirement and extends the annual effective date of the requirement from October 1 to January 1, beginning with requirements effective January 1, 2029. The final rule also removed the prior two-year phase-in of highly material supervisory model changes.

Separately, the Fed requested public comment on a proposed revision to its noninterest income model for the 2027 stress test. If adopted, the revised model would replace the current noninterest income model. The proposal also includes targeted revisions to the FR Y-14A/Q/M reporting forms — including reimplementing mortgage servicing rights data collection and adding items related to deposit beta segmentation, transfer pricing, and fair value adjustments — to facilitate future model development. Proposed reporting revisions would take effect for the December 31, 2027, report date. As previously covered by InfoBytes, Fed Vice Chair for Supervision Michelle Bowman signaled in September that the Board would consider finalizing both rules, noting the changes together would reduce stress capital buffer volatility by half. Comments on the proposal are due by December 1.