The Federal Reserve is set to vote on revisions to its bank stress test framework, with Michelle Bowman indicating the changes are likely to be finalized in the coming weeks. The updates aim to improve transparency and predictability for lenders, including more disclosure about how stress test models are used.
Under the revised approach, results from two recent stress tests are expected to inform capital buffer requirements. The overhaul is described as part of broader adjustments to capital rules, and Bowman also points to the need for revisions to address how risk is measured and which risks are included in the framework. Different outlets emphasize aspects of the motivation—such as risk sensitivity and captured risk—while agreeing on the overall direction and timing.
Bowman’s comments, reported from London, frame the process as an agency review that will culminate in final revisions after the Fed considers the latest refinements and votes on the updated framework. The final details are expected to become available after the voting process and subsequent publication of additional model information.
