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RegulationsJune 27

Fed’s stress test results challenge Basel III Endgame standards

All 31 tested banks passed the Fed’s stress test
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Fed’s stress test results challenge Basel III Endgame standardsMichael Barr, vice chair for supervision at the US Federal Reserve, speaks during a Senate Banking, Housing, and Urban Affairs Committee hearing. Image: Samuel Corum/Bloomberg

In its annual stress test of large US banks, the Federal Reserve has found US banks to be well positioned to deal with a severe recession, adding fuel to the debate about the necessity for further proposed capital requirements under Basel III Endgame.

This year the Fed tested 31 banks, up from 23 banks in 2023, by estimating losses, revenues, expenses and capital levels under hypothetical fiscal conditions.

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