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Benzinga
  • 2 years ago
The Federal Reserve's annual stress test shows that large banks would face greater projected losses but remain well-capitalized to withstand a severe recession in 2024. Under the adverse scenario, total projected losses for the 31 banks tested would be near $685 billion. However, all banks would maintain capital above the minimum requirements. Higher credit card losses, riskier corporate loan portfolios, and higher expenses combined with lower fee income lead to increased losses compared to last year.
Transcript
00:00It's Benzinga, and here's what's on the block.
00:02The Federal Reserve's annual stress test shows that large banks would face greater
00:06projected losses but remain well-capitalized to withstand a severe recession scenario in
00:112024.
00:13Under the adverse scenario, total projected losses for the 31 banks tested would near
00:17$685 billion, however, all banks would maintain capital above the minimum requirement.
00:24Higher credit card losses, riskier corporate loan portfolios, and higher expenses combined
00:28with lower fee income led to the increased losses compared to last year.
00:32For all things money, visit Benzinga.com.
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