June 14, 2023
Federal Reserve Board announces that results from its annual bank stress tests will be released on Wednesday, June 28, at 4:30 p.m. EDT
For release at 5:00 p.m. EDT
The Federal Reserve Board announced on Wednesday that results from its annual bank stress tests will be released on Wednesday, June 28, at 4:30 p.m. EDT.
Stress tests are one supervisory tool used to measure whether banks have adequate capital to absorb losses so that they can lend to households and businesses even in a severe recession. They evaluate banks’ resilience by estimating losses, net revenue, and capital levels—which provide a cushion against losses—under a hypothetical recession scenario.
This year’s scenario includes a severe global recession with heightened stress in commercial and residential real estate markets. It also includes an additional exploratory market shock for the largest banks that tests them against greater inflationary pressures.
Banks with $100 billion or more in total consolidated assets are subject to the Board’s stress tests, with larger banks required to participate annually, and banks with $100 to $250 billion in total assets required to participate every other year. This year, 23 banks were assessed against the hypothetical global recession.
Additional information can be found here.
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June 14, 2023