JPMorgan Chase's Stress Capital Buffer Cut to 2.5% After Fed Test, Capital Rules Eased

5:57 PM ET 07/01/2025 - MT Newswires

As a result, the bank's Standardized Common Equity Tier 1 capital ratio requirement, including regulatory buffers, will decline to 11.5% from 12.3%.

The Fed will announce the final buffer by Aug. 31, JPMorgan Chase said Tuesday in a statement. It will take effect Oct. 1 and remain in place through Sept. 30, 2026.

JPMorgan said that it is awaiting finalization of the Fed's proposed rule changes aimed at reducing volatility in capital requirements. The proposal includes averaging stress test results over two consecutive years and shifting the annual effective date from Oct. 1 to Jan. 1.

The Fed's "stress test results continue to demonstrate that banks are resilient, withstanding extreme hypothetical shocks while supporting the broader economy and financial markets," Chief Executive Officer Jamie Dimon said in the statement.

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