Federal Reserve Board – Federal Reserve Board announces that results from its annual bank stress test will be released on Friday, June 27, at 4:30 p.m. EDT

The Federal Reserve Board on Friday announced that results from its annual bank stress test will be released on Friday, June 27, at 4:30 p.m. EDT. Additionally, today the Board published its annual stress test methodology document, which provides details about the models used in the stress test.

The Board's stress test is one tool used to measure whether banks have adequate capital to absorb losses so that they can lend to households and businesses even in a severe recession. It evaluates banks' resilience by estimating losses, net revenue, and capital levels—which provide a cushion against losses—under a hypothetical recession scenario.

This year, 22 large banks were subject to the Board's stress test. The scenario includes a severe global recession with heightened stress in both commercial and residential real estate markets, as well as in corporate debt markets.

Additional information can be found here.

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