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mo4ch:>US banks pass financial stress tests

US banks pass financial stress tests







21 June 2018









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ANDREW CABALLERO-REYNOLDS/AFP/Getty



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The Federal Reserve's stress tests are designed to monitor banks' financial strength

The 35 largest banks operating in the US have enough money on hand to withstand a severe financial crisis despite rising levels of credit card debt.That was the finding of the annual "stress tests" conducted by the US central bank, the Federal Reserve.The US introduced the tests after the financial crisis to monitor financial strength in the event of a downturn.The firms reviewed account for about 80% of all bank assets in the US.The tests are intended to evaluate whether banks have enough of a financial cushion to handle a global recession.


'Hypothetical recession'Under the central bank's stress scenario the unemployment rate would rise to 10% and stock prices and property prices would plunge. The Federal Reserve calculated this would lead to r…