Key facts
- The Federal Reserve will release its annual bank stress test results on Wednesday.
- This year's stress tests will not alter capital levels for large banks.
- Regulators are reworking the stress test process.
- A hypothetical severe economic downturn scenario is used in the tests.
The Federal Reserve is scheduled to publish the results of its annual bank stress tests on Wednesday. A key development this year is that the outcomes of these tests will not mandate any adjustments to the capital levels for large banks. This decision comes as regulators are in the process of overhauling the methodology used for these stress tests. The hypothetical severe economic downturn scenario used in the tests will not impact capital requirements for the institutions undergoing evaluation.