"Federal Reserve Board Unveils 2024 Stress Test Scenarios"
The Federal Reserve Board has released the hypothetical scenarios for its annual stress test, which evaluates the resilience of large banks by estimating losses, net revenue, and capital levels under severe recession scenarios. This year's test includes a global recession with heightened stress in real estate and corporate debt markets, and for the first time, an "exploratory analysis" with four hypothetical elements to probe different risks in the banking system. The exploratory analysis will not affect bank capital requirements, and the results will be published alongside the annual stress test results in June 2024.