CBA Statement On Federal Reserve Stress Test Results

Regulatory Compliance & Agency Engagement
June 23, 2022

WASHINGTON, DC – Consumer Bankers Association (CBA) President and CEO Richard Hunt today released the following statement after the Federal Reserve announced the results of the agency’s annual stress tests, which assess the ability of large financial institutions to weather severe economic uncertainty:

 

“Today’s results once again affirmed the strength and resiliency of the nation’s leading banks. Thanks to rising capital levels built over the last decade, banks remain well-positioned to continue financing the American Dream for hardworking families and small businesses across every community they serve. Amidst increased economic headwinds, today’s outcome should serve as a welcome reminder that no matter the challenges ahead, banks are ready and willing to help weather the storm.”

 

BACKGROUND

 

  • The Board's stress tests help ensure that large banks can support the economy during economic downturns. The tests evaluate the resilience of large banks by estimating their capital levels, losses, revenue and expenses under hypothetical scenarios over nine future quarters.

 

  • The individual bank results from the stress test will factor directly into a bank's capital requirements, mandating each bank to hold enough capital to survive a severe recession. If a bank does not stay above its capital requirements, it is subject to automatic restrictions on capital distributions and discretionary bonus payments.

 

To learn more about today’s stress test results, click HERE.

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