DFAST averaging reform would hit 75% of tested banks

Nearly three-quarters of the banks that participated in both the 2025 and 2026 Dodd-Frank Act stress tests (DFAST) would have been worse off if the Federal Reserve’s proposed averaging reform had been in place, Risk Quantum analysis shows.

The proposal, published on April 17, 2025, would alter the calculation of the stress capital buffer (SCB) by averaging firms’ stress-test results over two

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