Fed seeks comment on 2027 stress test model revisions
Large bank holding companies, savings-loan and foreign banking holding firms must comment by Dec. 1 2026 on proposed model and reporting changes for the 2027 stress test.
The Board of Governors of the Federal Reserve System (Docket No. OP-1882) issued a notice inviting public input on proposed adjustments to the models used for the Board's 2027 supervisory stress test and on targeted revisions to the FR Y-14A/Q/M reporting forms.
The Board defines a material model change as one that could affect the post-stress common equity tier 1 capital ratio of any firm by at least 20 basis points, or the average change across firms by at least 10 basis points. The proposed changes, informed by comments on the 2026 models, would better capture heterogeneity across firms in the noninterest income model.
To support future model development and improve risk capture, the Board proposes several revisions to the FR Y-14 reports. These include reimplementing FR Y-14Q Schedule I (Mortgage Servicing Rights Valuation) with limited adjustments, adding items to Schedule G (PPNR) and Schedule H (Wholesale) such as additional collateral and guarantor information, and updating instructions for Schedules A, B, F, L and M, as well as FR Y-14M Schedule A and B. All revisions would be effective for the December 31 2027 report date.
Comments must be received on or before December 1 2026 and may be submitted via the Board's website, mail, hand delivery, or email, with the docket number included. Comments are subject to public disclosure and will be posted on the Board's website without alteration, except for removal of personal identifying information.
The notice includes a Paperwork Reduction Act analysis. The collection, titled "Capital Assessments and Stress Testing Reports," bears OMB control number 7100-0341. The Board seeks comment on the necessity, burden, accuracy of cost estimates, and ways to improve the quality and efficiency of the information collection.
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