Federal Reserve Board – Federal Reserve Board announces that results from its annual bank stress test will be released on Wednesday, June 24, at 4 p.m. EDT.

The Federal Reserve Board announced on Tuesday that the results of its annual bank stress test will be released on Wednesday, June 24 at 4:00 PM EDT.

The Council’s stress test is a tool used to measure whether banks have adequate capital to absorb losses so that they can lend to households and businesses even in a severe recession. It assesses banks’ resilience by estimating losses, net income and capital levels, which provide a cushion against losses, in a hypothetical recession scenario.

This year, 32 large banks have been subjected to the Council’s stress test. The scenario includes a severe global recession with intense stress on both commercial and residential real estate markets as well as corporate debt markets.

These stress test results will not affect the capital requirements of large banks. This follows the February Board announcement which would maintain the current stress-testing capital buffer requirements until 2027, when new requirements can be calculated based on loss estimation models that take into account public feedback.

Additional information can be found here.

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