The Federal Reserve Board voted 6-1 to approve revisions to its annual stress tests, a significant win for large Wall Street banks. Vice Chair for Supervision Michelle Bowman said the changes will make the tests more transparent, more granular and more risk‑sensitive while preserving their robustness. The Fed said the two finalized rules are largely consistent with a 2025 proposal that had been welcomed by banks. The tests, established after the 2008 financial crisis to assess banks' resilience

The Federal Reserve Board voted 6-1 to approve revisions to its annual stress tests, a significant win for large Wall Street banks. Vice Chair for Supervision Michelle Bowman said the changes will make the tests more transparent, more granular and more risk‑sensitive while preserving their robustness. The Fed said the two finalized rules are largely consistent with a 2025 proposal that had been welcomed by banks. The tests, established after the 2008 financial crisis to assess banks' resilience under hypothetical recession scenarios, were accompanied by a request for comment on a proposal to better reflect differences in banks' fee‑income business models.