The Federal Reserve said the 18 biggest U.S. banks need to submit the results of their own midyear stress tests to the Fed by July 5 in compliance with requirements under the Dodd-Frank Act.
“In the midyear test, which is being conducted for the first time in 2013, each firm develops its own baseline, adverse, and severely adverse scenarios to best reflect its individual operations and risks,” the Fed said today in a press release in Washington.
The Fed released in March the results of an annual supervisory test of the banks based on scenarios developed by the central bank. The Fed said 17 of the 18 largest U.S. banks could withstand a deep recession and maintain their capital levels above a regulatory minimum.
The Fed said banks are required to release the results of the severely adverse scenario between Sept. 15 and Sept. 30.
“Federal Reserve supervisors will incorporate the midyear stress tests into their ongoing assessment of the firms, but will not be measuring the stress test results against specific capital regulatory minimums,” the central bank said.
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