USD Bank Stress Test Results
The stress test applies synthetic market conditions to the books of large domestic banks in an effort to determine the banks' stability and ability to repay government loans;
- History
Expected Impact / Date | Description |
---|---|
Jun 26, 2024 | Results of the bank stress test will be released for 32 of the largest US banks, including which banks passed, which failed, and estimates for new capital requirements; |
Jun 28, 2023 | Results of the bank stress test will be released for 23 of the largest US banks, including which banks passed, which failed, and estimates for new capital requirements; |
Jun 23, 2022 | Results of the bank stress test will be released for 34 of the largest US banks, including which banks passed, which failed, and estimates for new capital requirements; |
Jun 24, 2021 | Results of the bank stress test will be released for 23 of the largest US banks, including which banks passed, which failed, and estimates for new capital requirements; |
Dec 18, 2020 | Results of the second round of bank stress test will be released for 34 of the largest US banks, including which banks passed, which failed, estimates for new capital requirements, and whether they will be able to increase dividends and share buybacks; |
Jun 25, 2020 | Results of the bank stress test will be released for 34 of the largest US banks, including which banks passed, which failed, estimates for new capital requirements, and whether they will be able to increase dividends and share buybacks; |
Jun 27, 2019 | Results of the bank stress test will be released for 18 of the largest US banks, including which banks passed, which failed, estimates for new capital requirements, and whether they will be able to increase dividends and share buybacks; |
Jun 21, 2019 | Results of the bank stress test will be released for 18 of the largest US banks, including which banks passed, which failed, estimates for new capital requirements, and whether they will be able to increase dividends and share buybacks; |
-
- USD Bank Stress Test Results News
- From bnnbloomberg.ca|28 hr ago
The biggest US banks took turns announcing higher payouts to investors Friday after easily passing the Federal Reserve’s annual stress test earlier this week. JPMorgan Chase & Co., Goldman Sachs Group Inc. and Bank of America Corp. were among firms that announced the increases two days after the regulator’s review showed that all 31 banks examined would maintain enough capital to withstand a hypothetical economic downturn. Citigroup Inc., Wells Fargo & Co. and Morgan Stanley, as well as several other large lenders, also boosted their ...
- From cnbc.com|Jun 27, 2024|1 comment
JPMorgan Chase said late Wednesday that the Federal Reserve overestimated a key measure of income in the giant bank’s recent stress test, and that its losses under the exam should actually be higher than what the regulator found. The bank took the unusual step of issuing a press release minutes before midnight ET to disclose its response to the Fed’s findings. JPMorgan said that the Fed’s projections for a measure called “other comprehensive income” — which represents revenues, expenses and losses that are excluded from net income — ...
- From cnbc.com|Jun 26, 2024|2 comments
The Federal Reserve said Wednesday that the biggest banks operating in the U.S. would be able to withstand a severe recession scenario while maintaining their ability to lend to consumers and corporations. Each of the 31 banks in this year’s regulatory exercise cleared the hurdle of being able to absorb losses while maintaining more than the minimum required capital levels, the Fed said in a statement. The stress test assumed that unemployment surges to 10%, commercial real estate values plunge 40% and housing prices fall 36%. “This ...
- From federalreserve.gov|Jun 26, 2024|2 comments
The results of the Federal Reserve Board's annual bank stress test showed that while large banks would endure greater losses than last year's test, they are well positioned to weather a severe recession and stay above minimum capital requirements. Additionally, the Board published aggregate results from its first exploratory analysis, which will not affect bank capital requirements. "This year's stress test shows that large banks have sufficient capital to withstand a highly stressful scenario and meet their minimum capital ratios," Vice Chair for Supervision Michael S. Barr said. "While the severity of this year's stress test is similar to last year's, the test resulted in higher losses because bank balance sheets are somewhat riskier and expenses are higher. The goal of our test is to help to ensure that banks have enough capital to absorb losses in a highly stressful scenario. This test shows that they do." The Board's stress test is one tool to help ensure that large banks can support the economy during downturns. The test evaluates the resilience of large banks by estimating their capital levels, losses, revenue and expenses under a single hypothetical recession and financial market shock, using banks' data as of the end of last year. The individual results from the stress test inform a bank's capital requirements to help ensure a bank could survive a severe recession and financial market shock. All 31 banks tested remained above their minimum common equity tier 1 (CET1) capital requirements during the hypothetical recession, after absorbing total projected hypothetical losses of nearly $685 billion. Under stress, the aggregate CET1 capital ratio—which provides a cushion against losses—is projected to decline by 2.8 percentage points, from 12.7 percent to 9.9 percent. While this is a greater decline than last year's, it is within the range of recent stress tests. This year's hypothetical scenario is broadly compara post: BIG BANKS PERFORM WELL IN LATEST STRESS TESTS, FED SAYS -- WSJ BANKS CAN WITHSTAND A HYPOTHETICAL SEVERE RECESSION, FED SAYS -- WSJ STRESS TESTS FIND BIG BANKS CAN WITHSTAND $685 BILLION IN ESTIMATED LOSSES, MORE THAN LAST YEAR -- WSJ
- From thehill.com|Jun 29, 2023|5 comments
The Federal Reserve said Thursday that banks are well capitalized enough to endure a severe recession but stand to lose $541 billion if the economy heads south. The findings came from the Fed’s annual stress test of the banking sector, which is based on major hypothetical declines in economic conditions, including a 40-percent drop in real estate prices and widespread office vacancies. “The $541 billion in total projected losses includes over $100 billion in losses from commercial real estate and residential mortgages,” Fed officials ...
- From axios.com|Jun 28, 2023
The nation's biggest banks are healthy enough to keep lending in the face of a severe economic shock, the Federal Reserve said on Wednesday as the central bank and other regulators prepare to propose harsher regulations for the financial sector. Why it matters: The results of the Fed’s annual stress tests — which factor into how much capital banks need to hold — come after a string of bank failures earlier this year took regulators by surprise. How it works: The Fed started conducting annual stress tests after the 2008 financial ...
- From federalreserve.gov|Jun 28, 2023
The Federal Reserve Board on Wednesday released the results of its annual bank stress test, which demonstrates that large banks are well positioned to weather a severe recession and continue to lend to households and businesses even during a severe recession. "Today's results confirm that the banking system remains strong and resilient," Vice Chair for Supervision Michael S. Barr said. "At the same time, this stress test is only one way to measure that strength. We should remain humble about how risks can arise and continue our work to ensure that banks are resilient to a range of economic scenarios, market shocks, and other stresses." The Board's stress test is one tool to help ensure that large banks can support the economy during economic downturns. The test evaluates the resilience of large banks by estimating their capital levels, losses, revenue and expenses under a single hypothetical recession and financial market shock, using banks' data as of the end of last year. All 23 banks tested remained above their minimum capital requirements during the hypothetical recession, despite total projected losses of $541 billion. Under stress, the aggregate common equity risk-based capital ratio—which provides a cushion against losses—is projected to decline by 2.3 percentage points to a minimum of 10.1 percent. This year's stress test includes a severe global recession with a 40 percent decline in commercial real estate prices, a substantial increase in office vacancies, and a 38 percent decline in house prices. The unemployment rate rises by 6.4 percentage points to a peak of 10 percent and economic output declines commensurately. The test's focus on commercial real estate shows that while large banks would experience heavy losses in the hypothetical scenario, they would still be able to continue lending. The banks in this year's test hold roughly 20 percent of the office and downtown commercial real estate loans held by banks. The large projected decline in commercial real estate prices, combined with the substantial increase in office vacancies, contributes to projected loss rates on office properties that are roughly triple the levels reached during the 2008 financial crisis. The $541 billion in total projected losses includes over $1 post at 4:30pm: US Fed Says 2023 Stress Test Shows Large Banks Well Positioned to Continue Lending in a Severe Recession Fed Says Test Showed Large Bank Trading Books Were Resilient to a Rising Interest Rate Environment post at 4:32pm: FEDERAL RESERVE: ALL 23 BANKS IN THE STRESS TESTS REMAIN ABOVE MINIMUM CAPITAL REQUIREMENTS IN WORST-CASE SCENARIO. post at 4:32pm: US Banks Pass Fed Stress Test, Clearing First Hurdle For Payouts - Banks Allowed To Announce Payouts Starting Friday
- From federalreserve.gov|Jun 23, 2022
The Federal Reserve Board on Thursday released the results of its annual bank stress test, which showed that banks continue to have strong capital levels, allowing them to continue lending to households and businesses during a severe recession. All banks tested remained above their minimum capital requirements, despite total projected losses of $612 billion. Under stress, the aggregate common equity capital ratio—which provides a cushion against losses—is projected to decline by 2.7 percentage points to a minimum of 9.7 percent, ...
Released on Jun 26, 2024 |
---|
Released on Jun 28, 2023 |
---|
Released on Jun 23, 2022 |
---|
- Details