All 31 bank holding companies passed for the first time since 2009
The US Federal Reserve
has said the 31 major banks tested in its latest stress tests
had sufficient capital to continue lending in the event of a
severe economic shock.
The tests projected
that under the most severe hypothetical scenario predicting a
deep recession, loan losses at the 31 participating bank
holding companies (BHC) would total $340bn over nine
This would result in
average tier one capital ratios falling from 11.9% to a minimum
of 8.2%, significantly higher than the common capital ratio of
5.5% measured in 2009.
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