Stress Testing Accountability and Transparency Act

This bill requires the Federal Reserve to publicly disclose the models, assumptions, and methodologies used to calculate banks' stress capital buffer requirements within 90 days of enactment (Section 2). It mandates the Fed to publish all stress test scenarios at least 30 days before testing begins, while prohibiting the use of climate-related scenarios for nonbank financial companies (Section 3). The bill also directs the Government Accountability Office (GAO) to annually evaluate the robustness and effectiveness of stress tests every three years, assessing their ability to identify risks to financial institutions and system stability (Section 4). These provisions directly affect large bank holding companies and nonbank financial institutions subject to Federal Reserve stress testing.