By Pete Schroeder
WASHINGTON, June 24 (Reuters) - The U.S. Federal Reserve said on Wednesday that 32 of the nation's largest banks are well-positioned to weather a severe economic downturn and continue lending, as firms could absorb over $700 billion in hypothetical losses and remain above minimum capital requirements.
The results of the central bank's annual "stress test" found large banks' capital levels fell by 1.6 percentage points but remained above the minimum requirements, even after weathering a hypothetical global recession in which real estate prices drop by one-third, unemployment spikes to 10%, and financial markets are in turmoil.
"Today's results underscore the strength of the banking system," said Fed Vice Chair for Supervision Michelle Bowman in a statement.
Several banks said after the stress-test results they were raising their dividends.
WASHINGTON, June 24 (Reuters) - The U.S. Federal Reserve said on Wednesday that 32 of the nation's largest banks are well-positioned to weather a severe economic downturn and continue lending, as firms could absorb over $700 billion in hypothetical losses and remain above minimum capital requirements.
The results of the central bank's annual "stress test" found large banks' capital levels fell by 1.6 percentage points but remained above the minimum requirements, even after weathering a hypothetical global recession in which real estate prices drop by one-third, unemployment spikes to 10%, and financial markets are in turmoil.
"Today's results underscore the strength of the banking system," said Fed Vice Chair for Supervision Michelle Bowman in a statement.
Several banks said after the stress-test results they were raising their dividends.
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