According to the Fed, the nation’s largest banks are strongly capitalized and would be able to lend to households and businesses during a severe global recession.
The Fed is proposing to modify its capital plan and stress testing rules for the 2017 cycle that would remove banks with less than $250 billion in assets from being included in the annual CCAR qualitative review.
The results of the Federal Reserve’s most recent bank stress tests showed the nation’s largest banks continue to build capital levels and improve credit quality, strengthening their ability to lend during a severe recession.