Federal Reserve Adopts Stress Test Transparency Rule Effective 2 November 2026

The Federal Reserve has adopted final amendments to Regulations Y, LL and YY that will change how supervisory stress-test scenarios and models are proposed, published and opened to public input. The rule was published on 2 October 2026 in 91 FR 62870 and takes effect on 2 November.

A public timetable after the jump-off date

Under the final rule, the Board will propose annual stress-test scenarios by 10 January and publish final scenarios by 28 February. The public-input period must last at least 30 days.

The previous framework required the Board to notify firms of the scenarios by 15 February. The amended timetable therefore adds a public proposal stage before final scenarios are issued, while retaining 31 December as the stress-test jump-off date.

The Board said it will publish proposed scenarios only after the jump-off date to reduce the risk that firms could adjust their balance sheets after seeing the scenarios and before the test begins. The rule’s timetable and the Board’s rationale address separate points: the first establishes when public input occurs, while the second explains why the proposal stage follows the start of the exercise.

The amendments also revise the stress-testing and scenario-design policy statements and adjust elements of the capital-planning cycle. The document addresses global market shock notifications, company-run stress-test and capital-plan dates, capital-action deadlines and the effective date for stress capital buffer requirements.

The framework covers identified banking organizations, covered savings and loan holding companies, certain large state member banks and nonbank financial companies supervised by the Board. The governing statutory framework includes section 165(i)(1) of the Dodd-Frank Act, which requires annual supervisory stress tests for bank holding companies with $250 billion or more in total consolidated assets and for nonbank financial companies supervised by the Board.

The final action also addresses the 2027 stress test. The Board said it is finalizing models for that exercise and proposing additional model changes for public input. The amendments establish the disclosure and input process; they do not disclose the outcome of the 2027 stress test.

What the rule leaves for later

The published rule identifies the next substantive materials as the proposed and final 2027 scenarios and the public-input materials for additional model changes. It does not identify a further scheduled event beyond those materials.

The final rule and policy statements take effect on 2 November 2026. The Board’s proposed 2027 scenarios are due by 10 January.