The
The hypothetical scenario included a severe global recession with stress in the commercial and residential real estate markets, the Fed said in a statement Thursday. The central bank will also incorporate “aggregate results” from its first exploratory analysis, but that portion won’t affect bank-capital requirements
Stress tests are a tool measuring whether banks have sufficient capital to absorb losses so that they’re able to lend to households and businesses even in a severe recession.
To ...
Learn more about Bloomberg Law or Log In to keep reading:
Learn About Bloomberg Law
AI-powered legal analytics, workflow tools and premium legal & business news.
Already a subscriber?
Log in to keep reading or access research tools.