The Federal Reserve announced that it will maintain capital requirements for large banks until 2027.

The Federal Reserve announced on Wednesday that it will not adjust the capital levels of large banks during the 2026 stress test cycle, and is currently considering several reforms to the annual test to improve transparency. Fed Vice Chairman for Supervision Bowman stated that the stress capital buffer requirements for large banks will be postponed until 2027 to allow the Fed sufficient time to assess potential shortcomings in its testing models when simulating recessionary scenarios to examine bank financial conditions. Previously, the Fed voted last October to open its testing models to public comment and will also publish the annual stress scenarios used to test banks.