H.R. 5270 - Stress Testing Accountability and Transparency Act

OpenCongress is in beta. We'd love your feedback!Share feedback

Summary

The Stress Testing Accountability and Transparency Act would require the Federal Reserve to establish and publicly disclose the models, assumptions, and methods it uses when conducting annual stress tests on large banks and financial companies. These stress tests assess how financial institutions would handle severe economic disruptions and determine their capital requirements. If enacted, the bill would mandate that the Federal Reserve issue rules explaining its stress testing approach and annually disclose the economic scenarios used in these tests.

The bill would also impose restrictions on the Federal Reserve's stress testing practices. It would prohibit the Federal Reserve from making significant changes to stress test methodologies outside of the formal rulemaking process, which requires public notice and comment. Additionally, the bill would ban the Federal Reserve from conducting climate-related stress tests and would require that capital requirements not duplicate coverage of the same risks. The Government Accountability Office would be required to report every three years on whether these stress tests are effective.

For everyday citizens, this bill could affect banking stability and transparency. By requiring public disclosure of how stress tests work, the bill aims to increase accountability in how regulators assess bank safety. However, the prohibition on climate-related stress tests could limit the Federal Reserve's ability to evaluate risks from climate change to the financial system. The bill has passed committee review and is eligible for a floor vote in the House.

AI-generated summary

Lifecycle of the Bill

Committee Consideration and Mark-up Session Held

Sep 16, 2025

Ordered to be Reported (Amended) by the Yeas and Nays: 28 - 24.

Sep 16, 2025

HearingHouseMarkup

Sep 16, 2025 · 14:00

Various Measures

Committee

House Committee on Financial Services

View full hearing

Summary

On September 16, 2025, the House Committee on Financial Services held a markup session to consider 10 bills aimed at reforming banking regulations and financial services. The bills addressed diverse topics including deposit insurance, asset recovery, bank competition, financial exploitation prevention, and regulatory oversight. Key measures included H.R. 3234 (Keeping Deposits Local Act), which would increase reciprocal deposit limits for banks; H.R. 5262 (Bank Competition Modernization Act), which would streamline merger review for smaller banks under $10 billion in assets; H.R. 5291 (Merchant Banking Modernization Act), which would extend merchant banking investment holding periods from 10 to 15 years; and H.R. 2478 (Financial Exploitation Prevention Act), which would allow investment companies to delay redemptions when financial exploitation of seniors or vulnerable adults is suspected. The committee voted on several bills with varying levels of support. H.R. 3682 (Financial Stability Oversight Council Improvement Act) passed 47-4, while H.R. 2478 passed unanimously 50-0. H.R. 5262 passed on a closer 28-24 vote, and H.R. 5291 passed 35-17. Other bills considered included H.R. 1531 (PROTECT Taiwan Act), H.R. 3484 (Business Owners Protection Act), H.R. 5317 (Community Bank Deposit Access Act), H.R. 5270 (Stress Testing Accountability and Transparency Act), and H.R. 5344 (Kleptocracy Asset Recovery Rewards Program Act). The committee successfully reported all 11 bills to the full House, though passage of these measures is not guaranteed and each bill must still be considered by the full chamber.