This is from Morgan Stanley research.
Why should investors care? The Fed’s Supervisory Stress test gives us each bank’s aforementioned Stress Capital Buffer (SCB), which is effectively the drawdown of capital in a stressed scenario plus the prefunding of four quarters of dividends, with a 2.5% minimum. The SCB is added onto the basic 4.5% level + a surcharge for the Global Systemically Important Banks (GSIB) to determine the minimum capital levels that banks must hold from 4Q24 through 3Q25.