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Fed opts to keep bank capital buffers steady until 2027 as it mulls stress test tweaks

BY Reuters | ECONOMIC | 02/04/26 04:30 PM EST

WASHINGTON, Feb 4 (Reuters) - The U.S. Federal Reserve announced on Wednesday it would not adjust ?large bank capital levels during ?the 2026 stress testing cycle, ?as the central ?bank considers ?several changes to the annual ?exercise aimed ?at boosting transparency.

Fed Vice Chair for Supervision Michelle ?Bowman ?said ?large banks' "stress capital buffers" will instead be revised in 2027, after ?the Fed has had a chance to identify any "deficiencies" in the models it uses ?to ?test large bank finances against a hypothetical economic ?downturn.

The Fed voted in October to make its testing models open to public feedback, as well as ?the scenarios they test banks against every year. (Reporting by Pete Schroeder; ?Editing by Chris Reese)

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