The biggest US banks pass another Fed stress test, boosting case for looser capital rules

From Yahoo Finance: 2025-06-27 16:30:00

The Federal Reserve’s stress tests reveal that major US banks have enough capital to withstand severe economic conditions, with losses totaling over $550 billion. The banks’ common equity tier 1 capital ratio is at 11.6%, above the required minimum of 4.5%. This could support the Trump administration’s push for deregulation. The Fed is considering changes to bank capital rules, including the enhanced supplementary leverage ratio, and will host a conference on US bank capital frameworks. Strong test results may lead to higher bank profitability and increased mergers. Stay tuned for upcoming regulatory relief measures and potential changes to future stress tests.



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