Fed stress test shows 32 largest US banks can withstand severe recession

Yahoo Finance··Read original
3▲5 ▼0Impact / 5
Summary · why it matters

The Federal Reserve's annual stress test found that all 32 of the largest US banks could continue lending during a severe recession while maintaining capital well above required minimums. Under a hypothetical scenario where unemployment spikes to 10%, home prices plunge 30%, commercial real estate prices tumble 39%, and the stock market drops nearly 60%, the banks in aggregate would lose more than $708 billion. After covering those losses, they would still hold capital equal to 11.2% of risk-weighted assets, far exceeding the Fed's 4.5% requirement. Credit cards were the hardest-hit category with about $200 billion in losses, followed by commercial and industrial loans at nearly $160 billion. Bank of America, JPMorgan, and Goldman Sachs each had capital more than double the regulatory minimum, while UBS America and Deutsche Bank US held the most capital on hand at 15.5% and 14.4%, respectively.

Impact on assets 5

Financials▲ · 4 stocks
Bank of America Corp
BAC
▲ PositiveRegulationrelevance

Fed stress test confirms Bank of America can withstand severe recession with capital more than double the regulatory minimum.

Goldman Sachs Group Inc
GS
▲ PositiveRegulationrelevance

Fed stress test confirms Goldman Sachs can withstand severe recession with capital more than double the regulatory minimum.

UBS Group AG
UBSG
▲ PositiveRegulationrelevance

Fed stress test shows UBS America held the most capital at 15.5%, well above requirements.

Digital Finance & Tokenization▲ · 1 stocks
JPMorgan Chase & Co
JPM
▲ PositiveRegulationrelevance

Fed stress test confirms JPMorgan Chase can withstand severe recession with capital more than double the regulatory minimum.

© 2026 MarketIVNews