The Federal Reserve requested comment on proposals to enhance the transparency and public accountability of its annual stress test for large banks.
Details: The Fed said it is seeking comment on the stress test models, framework changes, and the hypothetical scenarios for the 2026 stress test.
Background: The Fed conducts stress tests to ensure that large banks are sufficiently capitalized even in a severe recession. In December 2024, the Fed announced it would modify the test, and it proposed changes in April of this year.
Deadlines: Comments on the 2026 scenarios are due by Dec. 1, and comments on the proposal enhancing model and scenario transparency are due by Jan. 22.