By by Calculated Risk on 6/23/2022 04:40:00 PM
From the Federal Reserve: Federal Reserve Board releases results of annual bank stress test, which show that banks continue to have strong capital levels, allowing them to continue lending to households and businesses during a severe recession
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, which is still more than double the minimum requirement.
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