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Bill > HR5270


US HR5270

US HR5270
Stress Testing Accountability and Transparency Act


summary

Introduced
09/10/2025
In Committee
09/16/2025
Crossed Over
Passed
Dead

Introduced Session

119th Congress

Bill Summary

A BILL To require the Board of Governors of the Federal Reserve System to issue rules to establish certain methodologies and scenarios used in stress testing, and for other purposes.

AI Summary

This bill requires the Board of Governors of the Federal Reserve System to implement several new requirements related to stress testing of financial institutions. Within 90 days of enactment, the Board must establish clear rules and methodologies for determining the stress capital buffer requirement (a financial cushion that banks must maintain to absorb potential losses) and ensure that capital requirements are not double-counted across different risk assessments. The bill mandates that any changes to these rules must go through a notice and comment rulemaking process. Additionally, the bill requires the Board to publish the scenarios for stress tests at least 30 days before conducting them and explicitly prohibits the Board from conducting climate-related stress tests on nonbank financial companies. The legislation also requires the Government Accountability Office (GAO) to conduct a comprehensive study every three years, evaluating the effectiveness of stress tests in assessing the safety of financial institutions and the stability of the U.S. financial system. The bill aims to increase transparency, accountability, and predictability in the stress testing process for financial institutions.

Committee Categories

Business and Industry

Sponsors (3)

Last Action

Ordered to be Reported (Amended) by the Yeas and Nays: 28 - 24. (on 09/16/2025)

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