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[Federal Reserve's Annual Bank Stress Test Results Show Large Banks Can Withstand Severe Economic Recession] The Federal Reserve's annual bank stress test results indicate that large banks have the ability to withstand a severe economic recession while continuing to provide credit support. Under the hypothetical scenario, total loan losses for large banks exceeded $708 billion, with total capital declining by only 1.6 percentage points, still above the minimum capital requirements. Michelle W. Bowman, Vice Chair for Supervision at the Federal Reserve, stated that the test results reflect the strength of the banking system, and public feedback will help improve the stress tests. All 32 banks involved in this test maintained capital adequacy ratios above the minimum requirements under the assumed severe global economic recession scenario.