DFAST model changes would boost capital ratios
But category IV banks would suffer amid PPNR overhaul
The Federal Reserve’s proposed model changes for the 2026 Dodd-Frank Act stress test would have increased the stressed capital ratio for US banks by an average of 29 basis points had they been in place in the last two years, the regulator has calculated.
The improvement in the stressed Common Equity Tier 1 (CET1) capital ratio would have translated to an aggregate reduction in stress capital
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