US banks hold up under Fed stress tests

Federal Reserve

The largest US banks continue to strengthen their ability to lend, even during a period of severe recessions, the Federal Reserve said yesterday as it released its latest stress test results.

Under the Fed's severely adverse scenario, the 31 largest bank-holding companies (BHCs) would lose $490 billion over the next nine quarters – the horizon over which the annual tests are conducted.

This compares favourably with last year's test, where the losses for the 30 largest BHCs were projected to reac

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