WASHINGTON, March 13 (UPI) -- The Federal Reserve said Tuesday most large U.S. banks are meeting capital requirements despite projected losses in a down economy.
Summary results of the most recent round of bank stress tests showed "the majority of the largest U.S. banks would continue to meet supervisory expectations for capital adequacy despite large projected losses in an extremely adverse hypothetical economic scenario," the Federal Reserve said in a statement.
The Fed's Comprehensive Capital Analysis and Review includes stress tests to determine if banks "have sufficient capital in times of severe economic and financial stress to continue to lend to households and businesses."
"Losses at the 19 bank holding companies are estimated to total $534 billion during the nine quarters of the hypothetical stress scenario," which includes 13 percent unemployment, a 21-percent drop in housing prices and a 50-percent drop in equity prices, the U.S. central bank said.
