June 06, 2024

Federal Reserve Board announces that results from its annual bank stress tests will be released on Wednesday, June 26, at 4:30 p.m. EDT

For release at 2:00 p.m. EDT

The Federal Reserve Board announced on Thursday that results from its annual bank stress tests will be released on Wednesday, June 26, at 4:30 p.m. EDT. Additionally, aggregate results from the Board's first exploratory analysis, which will not affect bank capital requirements, will be released simultaneously.

Stress tests are one supervisory 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. They evaluate banks' resilience by estimating losses, net revenue, and capital levels—which provide a cushion against losses—under a hypothetical recession scenario.

This year, 32 banks with $100 billion or more in total assets are subject to the Board's stress tests. The scenario includes a severe global recession with heightened stress in commercial and residential real estate markets. Separately, the exploratory analysis includes four separate hypothetical elements, including two funding stresses applied to all banks tested and two market shocks applied to only the largest and most complex banks.

Additional information can be found here.

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Last Update: June 06, 2024