Federal Reserve Board announces that results from its annual bank stress tests will be released on Thursday, June 23, at 4:30 p.m. EDT
Stress tests help ensure that 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 accompanied by a period of heightened stress in commercial real estate and corporate debt markets.
Banks with more than $100 billion in total consolidated assets are subject to the Board’s stress tests, with larger banks required to participate annually, and smaller banks required to participate every other year. This year, a total of 34 banks participated in the stress tests.
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