US Banks Undergo Annual Stress Tests by Fed with Predictable Results
The Federal Reserve will release the results of its annual "stress tests" on Wednesday, assessing how much capital banks would need to withstand a severe economic downturn. The results help banks with capital planning and decide how much they can return to shareholders in dividends or buybacks. Despite the recent banking crisis, big US lenders are expected to show they have ample capital to weather any fresh trouble, although investor payouts are likely to dip slightly. Smaller lenders including Capital One, U.S. Bancorp, and Citizens will also be in focus.