BofA, Citi among hardest hit in latest Fed buffer review
Five out of eight US systemic banks face higher stress capital buffer add-ons
Five of the eight US systemic lenders will see their minimum solvency requirements increase from October, after their performances in this year’s stress tests led to a higher stress capital buffer (SCB).
The SCB, introduced by the Federal Reserve in 2020, is determined by the maximum depletion of a bank’s Common Equity Tier 1 ratio in the Dodd-Frank Act stress test (DFAST), plus an add-on covering four quarters of planned capital distributions. Along with the global systemically important bank
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