After the turbulence on the US banking market, this year’s stress test was a particular focus for investors.
(Photo: dpa)
Washington According to the results of the annual stress test, the major banks active in the USA can withstand an economic crisis in an emergency. In the negative scenario of the US Federal Reserve (Fed), which assumed a severe economic downturn, the 23 tested institutes were able to maintain an average capital ratio of 10.1 percent, as the Fed announced on Wednesday after the US stock market closed.
A rate of at least 4.5 percent was required. In view of the turbulence among the US regional banks in the spring, which led to the collapse of several institutions, the regular stress check was the focus of investors this time.
The US subsidiary of Deutsche Bank, which had failed several times in the past, performed with a strong capital ratio of 17.4 percent. The Citizens money house had the worst rate at 6.4 percent. The financial group Charles Schwab achieved the highest value with 22.8 percent.
The major US banks Bank of America, JPMorgan, Morgan Stanley, Citigroup, Goldman Sachs and Wells Fargo were also subjected to the stress check. In the stress scenario, they all had capital ratios well above the minimum requirements.
The Fed’s negative scenario this time included a surge in the unemployment rate by 6.5 percentage points. In the 2022 test it was only 5.8 percentage points. In the crisis scenario, a 40 percent slump in prices for commercial real estate was also assumed this time.
More: The aftermath of the banking crisis