Stress Testing Accountability and Transparency Act

119 HR 5270 RH: Stress Testing Accountability and Transparency Act U.S. House of Representatives 2025-11-04 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. IB Union Calendar No. 318 119th CONGRESS 1st Session H. R. 5270 [Report No. 119–366] IN THE HOUSE OF REPRESENTATIVES September 10, 2025 Mr. Huizenga (for himself and Mr. Barr ) introduced the following bill; which was referred to the Committee on Financial Services November 4, 2025 Additional sponsor: Mr. Sessions November 4, 2025 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on September 10, 2025 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. 1. Short title This Act may be cited as the Stress Testing Accountability and Transparency Act . 2. Rulemaking related to stress capital buffer requirements (a) In general Not later than 90 days after the date of the enactment of this section, the Board of Governors of the Federal Reserve System (in this Act referred to as the Board ) shall issue a rule— (1) establishing the models, assumptions, formulas, and other decisional methodologies that are used to conduct any stress test pursuant to section 165(i) of the Financial Stability Act of 2010 ( 12 U.S.C. 5365(i) ), including any such test that is used to determine any component or subcomponent of the stress capital buffer requirement for a covered company; and (2) to determine, where the Board has supervisory stress test results from two or more periodic analyses of a covered company, the covered company’s stress capital buffer requirement on the basis of supervisory stress test results from two or more periodic analyses of that covered company. (b) Changes The Board may only make material changes to the methodologies established in the rule issued under subsection (a)(1) through notice and comment rulemaking. (c) No double-count The Board shall ensure no double-count of capital requirements for the same risks in the stress capital buffer requirement and the risk-based capital requirements. (d) Definitions In this section: (1) Covered company The term covered company means a company to which section 225.8 of title 12, Code of Federal Regulations, or section 238.170 of title 12, Code of Federal Regulations, applies. (2) Stress capital buffer requirement The term stress capital buffer requirement has the meaning given that term under— (A) section 225.8(d) of title 12, Code of Federal Regulations; and (B) section 238.170(d) of title 12, Code of Federal Regulations. (e) Rule of construction Nothing in this section may be construed to imply that the Board is required to establish a stress capital buffer requirement for any bank holding company or any other company regulated by the Board. 3. Rulemaking relating to stress testing (a) In general Beginning in the first calendar year beginning after the date of the enactment of this section, the Board shall, not less than 60 days before conducting a stress test pursuant to section 165(i) of the Financial Stability Act of 2010, publicly disclose each scenario to be used in such stress test. (b) Prohibition The Board may not, by rule or otherwise, subject any nonbank financial company or bank holding company to a climate-related stress test using the authority provided in section 165(i) of the Financial Stability Act of 2010. 4. GAO report (a) In general The Comptroller General of the United States shall, every 3 years, conduct a study and submit a report to the Congress with respect to the stress tests conducted by the Board under section 165(i) of the Financial Stability Act of 2010 in the 3 most recent calendar years. (b) Contents The report submitted to the Congress under subsection (a) shall consider the effectiveness of the stress tests in evaluating— (1) the safety and soundness of the nonbank financial companies and bank holding companies subjected to stress tests; and (2) the stability of the United States financial system. November 4, 2025 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed