US banks’ stress test accuracy worsens in DFAST 2024
Gap between Fed’s and large dealers’ projections widens to six-year high
US banks’ self-assessments of their stressed Common Equity Tier 1 (CET1) capital ratios diverged from the US Federal Reserve’s predictions once again in the latest Dodd-Frank Act stress test (DFAST), with large banks reporting the widest disparity in at least six years, Risk Quantum analysis shows.
The eight US global systemically important banks and Northern Trust’s projections for their peak-to-trough depletions were, on average, 132 basis points off those calculated by the Fed. This marked a
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