Saturday 12 July 2014
 
»
 
»
Story

US banks to undergo stress tests

New York, November 2, 2013

Banks in the US will have to test whether they can survive a halving of the stock market during a severe US recession, the Federal Reserve said yesterday, as it set the rules for next year's model runs to gauge the health of the financial system.

Eight large US banks must also test for the first time whether they can cope with the hypothetical default of their largest trading partner, the Fed said in documents laying out the so-called "stress tests".

"The capital planning and stress testing programme has contributed to a significant increase in capital at the largest banking organisations in the US," the US central bank said.

The stress tests were mandated by the Dodd-Frank law - aimed at preventing a repeat of the 2007-09 credit crisis - and measure how a bank's loan books and security portfolios hold up under a range of adverse economic scenarios.
 




Tags: US |

More INTERNATIONAL NEWS Stories

calendarCalendar of Events

Ads

Buy high quality China wholesale Health & Beauty , Electronics, Sports & Outdoors , Computers, Video Games, Toys & Hobbies Cell Phones, Automobiles and other wholesale products directly from reliable Chinese wholesalers or Factories on DHgate.com