Stress Testing Accountability and Transparency Act

HR 5270, the Stress Testing Accountability and Transparency Act, requires the Federal Reserve Board to establish clear, publicly disclosed rules for bank stress testing and capital buffer calculations within 90 days of enactment. It mandates that the Fed publish stress test scenarios 30 days in advance and prohibits applying climate-related stress tests to nonbank financial companies under existing law. The bill also requires the Government Accountability Office (GAO) to conduct triennial reports evaluating the effectiveness of stress tests in assessing financial institution safety and overall system stability. These provisions aim to increase transparency and standardize the Federal Reserve's stress testing framework for bank holding companies and nonbank financial institutions.