Modifications to the Capital Plan Rule and Stress Capital Buffer Requirement
What happened
The Board of Governors of the Federal Reserve System adopted a final rule, signed by Donald Trump, effective December 1, 2026. This rule amends the calculation of the stress capital buffer requirement for certain large bank holding companies and other financial firms by using the average of capital declines from the prior two annual stress tests. It also extends the annual effective date of the requirement to January 1 and modifies reporting forms to improve data collection.
Why it matters
The changes aim to reduce volatility in capital requirements, which can affect banks' long-term planning and the availability of credit. Abrupt changes in capital requirements can impact investment decisions and the supply of lending to households and businesses.
Who it affects
- ›Large bank holding companies
- ›Savings and loan holding companies
- ›U.S. intermediate holding companies of foreign banking organizations
- ›Nonbank financial companies supervised by the Board
- ›Households and businesses (credit supply)
The receipts are official. The summary is ours.
Read on Federal Register ↗Summaries are generated from the official text and may simplify or omit nuance. The official document is the source of truth.