The Federal Reserve announces that large bank capital requirements will remain until 2027

Odaily Planet Daily News: The Federal Reserve announced on Wednesday that there will be no adjustments to the capital levels of large banks during the 2026 stress test cycle. Currently, the Fed is considering several reforms to this annual test to improve transparency. Vice Chairman for Supervision Michael Barr stated that the large bank stress capital buffer requirements will be delayed until 2027 to give the Federal Reserve ample time to assess potential flaws in its testing models when simulating economic downturn scenarios. Previously, in October last year, the Federal Reserve voted to open its testing models to the public for feedback and also announced the release of the annual stress scenarios used to evaluate banks.