June 24, at 4 p.m. ET, is the release date and time for results of the Federal Reserve’s latest stress tests, the agency said late Tuesday, that were conducted with 32 large banks.
The latest round of stress tests were announced in late February. At the time, the Fed said the tests would evaluate the 32 banks against a severe global recession with heightened stress in both commercial and residential real estate and corporate debt.
It also said that the current stress capital buffer requirements would be maintained until 2027, meaning the tests would not affect large bank capital requirements. The new capital requirements next year would be calculated based on models that take public feedback into consideration, the agency said.
The stress test is designed to evaluation a bank’s resilience by estimating losses, net revenue, and capital levels—which provide a cushion against losses—under a hypothetical recession scenario. The Fed said the stress test is one tool used to measure whether banks have adequate capital to absorb losses so that they can lend to households and businesses even in a severe recession.
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