- Carpe diem: the Costa Rican women turning fish into fashion
- Senegal looks to aquaculture as fish stocks dwindle
- Will AI one day win a Nobel Prize?
- Climate change, economics muddy West's drive to curb Chinese EVs
- Argentina's Milei vetoes university budget after huge protests
- TotalEnergies plans to grow oil and gas production until 2030
- 2024 Nobels offer glimmer of hope as global crises mount
- Tokyo rallies on weak yen, Hong Kong reverses after surge
- Tunisia readies for vote as incumbent Saied eyes victory
- High childcare costs in US weigh on women's employment
- US voters seek help with crushing childcare costs
- Taiwan shuts down for second day as Typhoon Krathon to land
- Supercharged storms: how climate change amplifies cyclones
- Biden official urges talks as US port strike enters second day
- Huge protests in Argentina over public university cuts
- Rally in oil prices loses steam on mixed day for global stocks
- South America treated to rare 'ring of fire' eclipse
- Biden official says port strike deal not as far as parties think
- Mexico's new president offers apology for 1968 student massacre
- Historic funding round values OpenAI at $157 billion
- Mixed US car sales in Q3 as industry hopes for post-election bounce
- Thunderstorms are a 'boiling pot' of gamma rays, scientists find
- Scientists unlock secret of 'Girl With Pearl Earring'
- Dolphins flash friendly grins when they're ready to play
- Facing backlash, EU moves to delay deforestation rules
- US private sector adds more jobs than expected in September: ADP
- Boys out of critical condition after Zurich stabbings
- Spain logs record summer tourism as inflow draws protests
- Hedi Slimane quits as Celine's artistic director
- Oil prices extend rally on Iran attack
- Spain welcomed record number of tourists this summer
- France says coming tax hikes on the wealthy to be 'temporary'
- Why are Thailand's roads so deadly?
- Oracle to invest $6.5 bn in Malaysian cloud services region
- Parkrun marks 20 years of a free weekly jog, run... or walk
- Oil extends rally after Iran attack, Hong Kong soars again
- Prostitutes, prospectors drive spread in DR Congo mpox capital
- Oil extends rally after Iran attack, Hong Kong resumes surge
- Extreme heat another form of death sentence in Texas jails
- Can music help plants grow? Study suggests sound boosts fungus
- Nike earnings drop, says turnaround will take time
- US dockworkers launch mass strike a month before election
- Iron Dome: Israel's key anti-missile shield
- Cranes stand still as US dockworkers fight for 'future'
- GM reports US sales dip, but says EVs grew
- Sheinbaum takes office as Mexico's first woman president
- Webb telescope detects carbon dioxide on Pluto's largest moon
- Stock markets slump, oil jumps on Middle East concerns
- French PM vows more taxes and spending cuts ahead of budget fight
- Germany inaugurates IBM's first European quantum data centre
RBGPF | 100% | 59.99 | $ | |
CMSC | 0.04% | 24.78 | $ | |
NGG | -1.85% | 68.78 | $ | |
GSK | -2.15% | 39.45 | $ | |
BTI | -1.33% | 35.97 | $ | |
RIO | -0.48% | 70.82 | $ | |
RYCEF | 0.14% | 6.91 | $ | |
RELX | -0.11% | 47.29 | $ | |
BP | 0.86% | 32.37 | $ | |
CMSD | -0.04% | 24.93 | $ | |
SCS | -2.56% | 12.87 | $ | |
VOD | -2.16% | 9.74 | $ | |
JRI | -1.12% | 13.38 | $ | |
BCC | -1.33% | 139.53 | $ | |
AZN | 1.14% | 79.58 | $ | |
BCE | -1.13% | 34.44 | $ |
Major US banks can weather severe economic downturn: Fed
The largest banks operating in the US market have sufficient resources to withstand a severe economic downturn and continue providing financing to American families and firms, the Federal Reserve said Thursday.
The Fed subjected 33 banks to its annual "stress test" exercise, to gauge whether they would be able to weather a steep global recession.
In the hypothetical crisis, financial markets plummet, commercial real estate and corporate debt markets face substantial strain, US unemployment reaches 10 percent and the economy contracts by 3.5 percent.
The results "showed that banks continue to have strong capital levels, allowing them to continue lending to households and businesses during a severe recession," the Fed said.
The scenario for this year's test was even bleaker than the one used last year, but the outcome was the same, showing all the banks would maintain a sufficient "cushion" despite total projected losses of $612 billion, according to the report.
"Despite the larger post-stress decline this year... capital ratios remain well above the required minimum levels throughout the projection horizon" of nine quarters, the report said.
The stress tests, implemented in the wake of the 2008 global financial crisis, apply to banks with at least $100 billion in total assets, including the top tier designated as "global systemically important banks."
Smaller banks are only subjected to the stress tests every two years, so the results are not directly comparable to 2021, which tested 23 institutions.
Among the banks examined in both years, there were an additional $50 billion in losses under the tougher scenario, a Fed official told reporters.
However, the official stressed that the dire case applied is only hypothetical and not a forecast.
With the results in hand, banks can announce any plans for dividend payments and share buybacks starting Monday at 2030 GMT, the official said.
The Fed ordered limits to such distributions in June 2020 as the coronavirus pandemic caused a sharp economic downturn, but relaxed the restrictions in December 2020 before removing them following last year's tests.
Y.Ponomarenko--CPN