Stress-test plans and merger-review proposals shape bank planning

Bowman previewed two market-shock scenarios for large-bank stress tests. The Fed expects to finalize its new framework in the coming weeks and plans to use the worse scenario result in stress capital buffer calculations. It also plans to seek comment on a revised noninterest-income model for the 2027 test; proposed transparency changes would require annual disclosure of model documentation and scenarios and public comment on material model changes.

Preliminary Silicon Valley Bank review found no evidence tailoring caused supervisory delays. Bowman said the independent review also found no evidence that social media significantly contributed to the bank’s 2023 failure. She said the Fed is directing examiners to prioritize threats to banks’ financial condition or U.S. financial stability and submit monthly reports to supervision leaders and Reserve Banks.

FDIC proposed faster review for some bank acquisitions. Some acquisitions could be processed in as few as five days under the proposal. The agency separately proposed a rule intended to reinforce parity between state-chartered and national banks.

House lawmakers heard community bankers’ case for the Main Street Capital Access Act. At a Kentucky field hearing, bankers backed the bill’s proposed permanent two-year phase-in for new banks to meet federal capital requirements. The bill would set a 120-day deadline for decisions on bank merger and acquisition applications and require agencies to consider institutions’ risk profiles and business models in regulation and supervision.

Axos Financial completed its acquisition of Capital One IRA deposits. The acquired deposits totaled approximately $1.9 billion. Axos reported receiving cash equal to the deposit balance less a negotiated premium.

Grand River Commerce shareholders approved its merger with Isabella Bank Corporation. Closing is expected in the fourth quarter of 2026, subject to regulatory approval and other conditions. Shareholder approval does not complete the merger.