Federal Reserve's Barr: Decoupling stress testing from regulatory capital and increasing regulatory capital to make up for the shortfall in the stress capital buffer (SCB) is the best way to preserve the value of stress testing as a supervisory tool

2025-09-26

Federal Reserve's Barr: Decoupling stress testing from regulatory capital and increasing regulatory capital to make up for the shortfall in the stress capital buffer (SCB) is the best way to preserve the value of stress testing as a supervisory tool while maintaining appropriate capital levels in the system.