The Fed finalized rules to make bank stress tests more transparent and smooth capital-buffer swings.

The Board said the package should cut year-over-year capital-requirement volatility by about 50% without materially changing aggregate capital needs.

Buffer averaging starts in 2028, and large trading books will face two global market shocks each year, with the tougher loss used.

Credit: Illustrative classical columns and capital-buffer bands for Fed stress-test rules — not a Fed seal or official mark. (iShook Image Desk) Source: https://ishookfinance.com/fed-finalizes-stress-test-capital-buffer-rules-2026