Federal Reserve to Release Bank Stress Test Results on June 27
The Federal Reserve announced Friday that results from its annual bank stress tests will be released on June 27.
The Fed said 22 large banks were subject to the tests, which evaluates lenders’ resilience by estimating losses, net revenue and capital levels under a hypothetical recession. The scenario included a severe global recession with heightened stress in commercial and residential real estate markets and corporate debt markets, according to the Fed’s statement.
In April, the central bank announced a potential overhaul of stress tests that would average results over two years and provide more time for the big banks to adjust to new capital requirements.
At the time, it said it would delay the effective date of the annual stress-capital buffer requirement from Oct. 1 to Jan. 1 of the next year. Its proposal would also make “targeted changes” to streamline stress test-related data collection.
The planned changes aren’t designed to materially affect capital requirements.
Later this year, the Fed is set to propose more changes to improve the transparency of stress tests.
Source : Bloomberg
