Banks hurdle Fed stress tests with ease
Aggregate post-stress CET1 capital ratio of 18 participants well above regulatory minimum at 9.2%
US banks breezed this year’s Federal Reserve stress tests, with the participants’ aggregate post-stress capital ratios higher than in 2018.
All 18 firms that underwent the Fed’s severely adverse scenario, the toughest round of the annual Dodd-Frank stress tests, reported stressed capital and leverage ratios well above regulatory minimums.
The aggregate Common Equity Tier 1 (CET1) capital ratio of the participants depleted to a low point of 9.2% from a starting level of 12.3%. In 2018, the
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