Key facts
- The Federal Reserve has frozen stress capital buffers (SCBs) until 2027.
- This freeze prevents banks from benefiting from reduced stress test losses.
- 23 out of 30 banks analyzed showed lower CET1 capital depletion in the 2026 DFAST.
- Sixteen of these banks would have experienced reduced capital buffers without the freeze.
US banks have been denied potential capital relief from lower stress test losses after the Federal Reserve froze stress capital buffers (SCBs) until 2027, according to Risk Quantum analysis. Of the 30 firms with comparable prior stress test results, 23 recorded lower Common Equity Tier 1 (CET1) capital depletion in the 2026 Dodd-Frank Act stress test (DFAST) than in their previous outing. Sixteen of these firms would have seen their buffers cut if not for the SCB freeze, which prevents the reduced losses from translating into capital relief.