Fed approves banks after stress test
The Federal Reserve Board announced that 32 American banks successfully passed the stress test, demonstrating their ability to withstand losses of up to $708 billion in a severe global recession scenario. These banks were able to maintain their capital requirements despite hypothetical conditions including a rise in the unemployment rate to 10% and declines in property and home prices. The test results confirmed the banks' capacity to continue lending to households and businesses, with the Common Equity Tier 1 capital ratio remaining above the minimum required level. However, experts noted that the results might be somewhat superficial, given the ongoing focus on Basel III regulations.
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