US banks pass first round of stress tests

Deutsche Bank

A combined loss of $420 billion for US banks in a future recession would not be enough to stop them lending, due to substantial levels of capital, the Federal Reserve’s latest stress tests reveal.

The 18 US banks all passed the severely adverse scenario in the first round of the 2019 tests, which assumed the largest unemployment shock to date.

“The results confirm that our financial system remains resilient,” vice-chairman Randal Quarles said in a statement. “The nation’s largest banks are

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