Fed says 32 large banks are well positioned to weather a severe recession and continue lending under the latest stress test

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Fed says 32 large banks are well positioned to weather a severe recession and continue lending under the latest stress test

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Says:

  • Banks tested absorbed more than USD 700bln in hypothetical losses and saw capital decline only 1.6%, to remain above minimum requirements.
  • Fed reaffirmed plan to maintain capital levels steady as it adjusts the testing process and will set new stress capital buffers following 2027 test.

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