Continue to Lend to Households and Businesses

Big Banks Are Well Positioned to Weather a Severe Recession, Fed says


Author: Funds Society, Miami

  1. The Board's stress test is one tool to help ensure that large banks can support the economy during economic downturns
  2. All 23 banks tested remained above their minimum capital requirements during the hypothetical recession, despite total projected losses of $541 billion
  3. The $541 billion in total projected losses includes over $100 billion in losses from commercial real estate and residential mortgages, and $120 billion in credit card losses, both higher than the losses projected in last year's test