Large banks continued to maintain strong capital levels under a hypothetical severe global recession and substantial stress in commercial real estate and corporate debt markets, according to the results of Dodd-Frank Act-mandated stress tests, the Federal Reserve said today.
In the second supervisory stress test of 2020, large banks maintained strong capital levels under two separate hypothetical economic downturns, the Federal Reserve said on Friday.
The Federal Reserve today issued individual capital requirements, taking effect Oct. 1, for banks with more than $100 billion in total assets.
All 33 banks participating in the Federal Reserve’s 2020 supervisory stress tests would remain above minimum regulatory capital levels under three COVID-related downside scenarios.
While they have increased slightly in recent years, four key measures of banking system vulnerability remain “significantly smaller” than the period prior to the financial crisis, according to economists at the Federal Reserve Bank of New York.
The Basel, Switzerland-based Financial Stability Board today updated its list of global systemically important banks subject to supplemental loss absorbency requirements.
As the Basel, Switzerland-based Financial Stability Board begins the process of evaluating whether post-financial crisis regulatory efforts are reducing the systemic and moral hazard risks associated with systemically important banks, ABA said “that the prospect of TBTF with regard to banking organizations has been addressed in the United States by these regulatory actions and the banking industry’s concomitant efforts.”
With Vice Chairman for Supervision Randal Quarles scheduled to testify on Capitol Hill next week, the Federal Reserve today released its second report on its regulatory and supervisory activities for banking companies.
“The American economy in general is the best in the world at allocating new capital to rapidly growing sectors, and that’s the number-one thing you want from your banking and financial system,” Cowen says.
Cybersecurity and the slowing of the global economy are two key issues of concern, the CEOs of the nation’s largest banks told the House Financial Services Committee today.