US Fed to propose heightened stress-test transparency, Bowman says

By Neil Roland ( October 16, 2025, 21:47 GMT | Insight) -- In a U-turn from Biden administration policies, the US Federal Reserve plans this month to propose bank-friendly rules to increase the transparency of banks’ stress tests by providing detailed model descriptions for the 2026 test and disclosure of the market shock framework, said Michelle Bowman, the Fed’s vice chair for supervision. The proposal, to be issued for public comment before eventual adoption in some form, would supplement the agency’s pending April 2025 plan to reduce volatility of capital requirements stemming from its annual test results. In a U-turn from Biden administration policies, the US Federal Reserve plans this month to propose bank-friendly rules to increase the transparency of banks’ stress tests by providing detailed model descriptions for the 2026 test and disclosure of the market shock framework, said Michelle Bowman, the Fed’s vice chair for supervision....