#USA #banks

💥 US banks did not cope well with the Fed's stress test

Giant banks retain sufficient capitalization to cope with a financial shock - these are the conclusions reached by the Fed during the latest stress test of US banks.

As a result of this year's DFAST (Dodd-Frank Law stress test), Bank of America, Citigroup and JPMorgan Chase may have to raise their internal target ratios of the first level of total capital.

In total, 33 banks included in the assessment had a minimum capital adequacy ratio of 9.7%, which is more than twice the minimum value required by the central financial institution.

This year's stress tests were conducted in a simulation of a large economic downturn - with a peak unemployment rate of 10%, a 55% drop in stock prices and a 40% drop in commercial real estate prices.