Big banks all pass the Federal Reserve’s stress tests, but the tests were less vigorous this year
- On Friday, the Federal Reserve announced that all 22 major banks passed its annual stress tests held in 2024, demonstrating solvency under severe conditions.
- The Federal Reserve’s annual bank resilience evaluations, developed in response to the 2008 financial crisis, were scaled back this year due to a deteriorating global economic outlook, resulting in scenarios depicting less severe economic downturns.
- The Fed simulated scenarios including a 33 percent housing price drop, 50 percent stock market fall, 10 percent unemployment rise, and $550 billion in theoretical bank losses.
- Michelle Bowman, Vice Chair for Supervision, noted that major banks continue to have strong capital positions and maintain stability, and these banks will be permitted to announce dividend payments and share repurchase plans next week.
- The results suggest U.S. banks are generally well positioned to withstand future recessions, although concerns remain regarding growing private credit risks excluded from this test.
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Big banks all pass the Federal Reserve's stress tests
NEW YORK — All the major banks passed the Federal Reserve’s annual “stress tests” of the financial system, the central bank said Friday. But the test conducted by the central bank was notably less vigorous than it had been in previous years. All 22 banks tested this year would have remained solvent and above the minimum thresholds to continue to operate. The Fed found so, despite absorbing roughly $550 billion in theoretical losses. In the Fed’…
Biggest Banks Pass Stress Test
The Federal Reserve's most recent stress test shows that the nation's largest banks could survive a major severe recession, though the test was significantly less rigorous than it has been. The regulatory exam was given to 22 banks with assets of more than $100 billion, Yahoo Finance reports, and found...
Big US Banks Pass Fed Stress Test, Clearing Path for Shareholder Payouts
All 22 of the largest U.S. banks have passed the Federal Reserve’s latest annual stress test, demonstrating their ability to withstand a hypothetical financial crisis and paving the way for potential increases in shareholder payouts. In results released on June 27, the Fed said that under a “severely adverse” scenario—including a sharp global recession and surging unemployment to 10 percent—the banks would collectively suffer losses exceeding $5…
Big banks all pass the Federal Reserve's stress tests, which were less vigorous this year
NEW YORK — All major banks passed the Federal Reserve's annual “stress tests" of the financial system, the central bank said, but the test conducted by the central bank was notably less vigorous than in previous years.
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