Home » Fed stress test: all 23 banks examined pass the test, dividend and buyback limits removed

Fed stress test: all 23 banks examined pass the test, dividend and buyback limits removed

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The 23 most important banks in the United States have passed the Fed’s stress test. This is what the American central bank announced yesterday, after the closing of the markets. The institutions considered, the Federal Reserve said, could easily cope with a severe recession, as they all have capital at their disposal “well above” the minimum levels required in the event of a major economic slowdown. The banks sub-index jumped in afterhours trading after the announcement, with the KBW Bank Index climbing 1.5% at 5pm New York time. Having passed the stress tests, US banks will no longer be subjected to the restrictions imposed on dividend payments to shareholders and share buybacks, which they have had to observe since the pandemic to date.

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