US banks’ performance in latest DFAST worst in six years
Fed blames higher credit card delinquencies, riskier corporate lending and lower revenue
US banks saw their aggregated Common Equity Tier 1 (CET1) capital ratio fall by 280 basis points in this year’s Dodd-Frank Act stress test (DFAST), the worst performance of the past six exercises, Risk Quantum analysis shows.
The latest aggregate decline was greater than the 250bp drop recorded last year, superseded only by 2018’s 360bp depletion.
Among the 22 banks participating in both this year’s and last year’s DFAST, 18 experienced larger declines in their CET1 ratios in the 2024 test
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