Banks in US brace for second part of Fed's stress test
Deutsche Bank, Santander likely to fail the test which holds key to higher dividends
Washington
THE largest US banks and their foreign rivals are facing a tough two-step check-up of their financial health by the Federal Reserve, forcing the firms to get a far better grip on how they measure risk.
In its annual "stress tests", the Fed gauges whether banks have enough shareholder capital to withstand a severe economic shock like that of the 2007-09 crisis, when taxpayers spent billions of dollars to keep the industry afloat. It is scheduled to publish the first leg of the tests, announcing which of the 31 banks have dropped below the 5 per cent minimum for top-tier capital.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
SoftBank sells off Vision Fund assets as Son pivots to AI, chips
Latest Singapore 6-month T-bill offers cut-off yield of 3.7%
Bank of Japan must avoid raising rates to combat weak yen, says ex-central banker Watanabe
Jury chosen for Bill Hwang’s trial over Archegos collapse
UBS weighs bonus for investment bankers who refer rich clients
Citadel Securities is setting revenue records, CEO Zhao says