Fed: Banks reported higher losses than in 2023 stress test as bank balance sheets are riskier and expenses are higher.US Federal Reserve stress test shows large US banks are well positioned to weather severe recession and stay above minimum capital requirements.Fed: Thirty-one large US banks reported nearly $685 billion in losses under 2024 Fed stress test, but capital remained well above regulatory minimums.Fed: Bank corporate credit portfolios have become riskier as banks downgrade loans, driving higher test losses.Fed: Higher expenses and lower fee income also contributed to steeper stress test losses.Fed: Increases in bank credit card balances and higher delinquency rates drove greater hypothetical losses.Fed: Charles Schwab, Bank of New York Mellon, JPMorgan Chase, and Morgan Stanley among strongest performing banks.Fed: BMO, Citizens Financial, and HSBC saw lowest capital ratios under stress test.Banks permitted to report capital plans to investors beginning Friday afternoon after US market close: Fed official.
This article was written by Arno V Venter at www.forexlive.com.
