US banks maintain strong capital reserves in face of increased losses during annual Fed health check

Reported about 1 year ago

The annual Federal Reserve stress test found that the largest US banks could endure severe economic and market challenges while retaining enough capital to continue lending. Despite facing steeper hypothetical losses this year due to riskier portfolios, the banks maintained high-quality capital levels well above regulatory minimums. The results of the stress test allow banks to announce their capital plans, including possible stock buybacks and dividends, in the upcoming days. The increased losses were attributed to changes in banks' balance sheets, such as growing credit card balances, higher delinquency rates, and riskier corporate credit portfolios.

Source: YAHOO

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