US banks flex capital muscles in annual Fed stress test

Washington

BIG US banks are proving themselves to be stronger and sounder in an annual regulatory stress test, even as the Federal Reserve changes doomsday scenarios to keep them on their toes.

On Thursday, the Fed said each of the 33 US banks that underwent its standardised stress test were able to stay above minimum required capital levels in severe economic and market conditions. Banks that participated last year also passed, but their capital levels have largely improved since then.