Fed: All 32 Large US Banks Pass Stress Test, Absorb Over $700B in Hypothetical Losses
The Federal Reserve announced that all 32 large U.S. banks passed its latest stress test, showing they can withstand a severe recession with over $700 billion in hypothetical losses while remaining above minimum capital requirements. The Fed also reaffirmed plans to keep capital levels broadly stable as it revamps its stress-testing framework.
The Federal Reserve has confirmed that all 32 large U.S. banks passed its latest stress test, demonstrating their ability to withstand a severe recession. The test required banks to absorb more than $700 billion in hypothetical losses while continuing to lend and staying above minimum capital requirements.
The Fed also reiterated its plan to keep overall bank capital levels broadly stable as it reworks its stress-testing framework. New stress capital buffers will be implemented following the 2027 stress test cycle, indicating a long-term approach to regulatory adjustments.
Source: First Squawk