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The Board of Governors of the Federal Reserve System reported that each of the 22 U.S. banks that participated in its annual stress test have sufficient capital to absorb more than $550 billion in losses and continue lending to households and businesses under stressful conditions. Under the "severely adverse" scenario, which included a 10% peak in U.S. unemployment, a 50% drop in equity prices, and a 30% decline in commercial real estate prices, the average common equity tier 1 capital ratio of these banks would bottom out at 11.6%, well above the minimum requirement of 4.5%.
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Posted on Monday, July 28, 2025 @ 9:57 AM
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