JPMorgan slips 0.7% as Fed plans stress test overhaul

JPMorgan Chase shares slipped roughly 0.7% to $346.91 on Friday morning following details on how the Federal Reserve plans to reshape its annual bank stress tests. The central bank expects to release final changes within weeks to make the evaluation process more transparent and predictable.

Vice Chair for Supervision Michelle Bowman said the Federal Reserve intends to disclose more information about the models, variables and economic scenarios used in the tests. The central bank also plans to set each bank's stress capital buffer by averaging its two most recent test results rather than relying on a single year.

For JPMorgan, the largest U.S. bank by assets, averaging results over two years could reduce annual swings in required regulatory capital. The framework does not automatically lower capital requirements, and weaker test results could affect capital planning across two calculation cycles. Greater stability in the buffer may offer the bank more visibility for share buybacks and dividend planning.