U.S. Banks Stress Test Results
Big U.S. banks pass stress test but risky businesses could face major hits. Some banks could see significant loan losses in corporate credit and credit card portfolios.
Key Points
- Banks could withstand spike in joblessness and stresses in commercial real estate market
- Projected losses on loans could reach up to $571 billion under severely adverse scenario
- Corporate credit portfolios have shifted towards riskier loans
Pros
- Banks have enough capital to withstand severe economic downturn
- Common equity tier 1 ratio remains above minimum requirement
Cons
- Some banks could face major hits in risky businesses like corporate credit and credit card portfolios