The Federal Reserve has announced a reduction in Morgan Stanley’s Stress Capital Buffer (SCB) from 5.1% to 4.3%. The change will take effect on October 1, 2025, following Morgan Stanley's request for reconsideration of the preliminary SCB that was released in June 2025.
With this adjustment and other elements of the regulatory capital framework, Morgan Stanley’s aggregate U.S. Basel III Standardized Approach Common Equity Tier 1 (CET1) ratio will be set at 11.8%. As of June 30, 2025, the firm reported a CET1 ratio of 15.0%.
Sharon Yeshaya, Executive Vice President and Chief Financial Officer of Morgan Stanley, stated: “Morgan Stanley appreciates the Federal Reserve’s careful reconsideration of our 2025 CCAR results. We look forward to continued constructive engagement with the Federal Reserve on the stress testing framework. Morgan Stanley remains focused on ensuring we have long-term capacity to support global client engagement, invest in our core businesses and consistently grow our quarterly dividend.”