The Federal Reserve reduced Morgan Stanley’s Stress Capital Buffer from 5.1% to 4.3%, effective October 1, 2025, following the bank’s request for reconsideration of its preliminary buffer announced in June 2025.
The revised buffer results in an aggregate U.S. Basel III Standardized Approach Common Equity Tier 1 ratio of 11.8% for Morgan Stanley (MS). The firm’s CET1 ratio was 15.0% as of June 30, 2025.
"Morgan Stanley appreciates the Federal Reserve’s careful reconsideration of our 2025 CCAR results," said Sharon Yeshaya, Executive Vice President and Chief Financial Officer. "We look forward to continued constructive engagement with the Federal Reserve on the stress testing framework."
The Stress Capital Buffer is determined through the Federal Reserve’s annual Comprehensive Capital Analysis and Review process, which evaluates banks’ capital adequacy under stressed economic conditions. The buffer requirement affects how much capital banks must maintain above minimum regulatory levels.
Morgan Stanley stated it remains focused on maintaining capacity to support client engagement, invest in core businesses and grow its quarterly dividend. The company operates as a global financial services firm with offices in 42 countries, providing investment banking, securities, wealth management and investment management services.
The information is based on a company press release statement.
