The largest U.S. banks passed new stress test

WASHINGTON, June 23. /TASS/. All major U.S. banks have successfully passed the new stress test conducted by the Federal reserve (fed, Central Bank), the United States, and has demonstrated the ability to function properly even in conditions of severe and protracted recession in the country and the world in General. This was reported in the press service of the fed.

According to her testimony, the results of this analysis indicate that “the largest Bank holding company in the country demonstrate strong levels of capital and retain the ability to lend money to individuals and businesses during a deep recession.” We are talking about “the seventh round of stress tests conducted by the fed since 2009”. The test was subjected to 34 firms, which accounted for “over 75% of all domestic Bank assets” of the United States. The review covered the company, assets of $50 billion or more.

In accordance with the forecasts of the fed, in the “most unfavorable hypothetical scenarios” 34 backbone Bank of the United States will suffer losses in the amount of $383 billion during the nine quarters. Such a scenario implies the emergence of the deep global recession of the world, not just the us economy and a significant rise in unemployment in the United States followed by a period of heightened financial stress.

“This year’s results show that even with a deep recession, our major banks will maintain good capitalization. This will allow them to provide loans for all adverse] economic cycle and to support individuals and entrepreneurs in difficult times,” said a member of the Board of governors Jerome Powell.