The US Federal Reserve also lifted the ban on payments and repayments in major US banks when it released an analysis showing that lenders could lose about $ 500bn in losses and meet basic requirements.
Twenty-three banks, including JPMorgan Chase and Goldman Sachs, have faced “pressure tests” by the Fed that have shown economic stagnation on a number of fronts. celestial phenomena. These include the deterioration of the US market, the economic downturn, and trade crises.
The results, released Thursday, will open the way billions of dollars in purchases of property and shares, which bankers have been eagerly awaiting.
“Last year, the Federal Reserve conducted three stress tests with a variety of responses and all of them have confirmed that banks are more committed to helping recovery,” said Randal Quarles, the Fed’s deputy vice president.
Annual tests show that the largest lenders in the country can withstand a $ 474bn loss from debt and other obligations, and continue to have more than double the required capital, or CET1, capital associated with their wealth.
Of those in the U.S. headquarters, Goldman Sachs and Morgan Stanley savings groups experienced significant difficulties in their tests, with a decrease of 5.9 and 4.7 percent, respectively.
This compares with an average reduction of 2.4 per cent of the 23 banks surveyed, which includes American foreign banking companies with major operations in the US.
Consumer debt incurred a lower share in losses than in previous years as many retail customers spent last year paying off credit cards and other loans during the Covid-19 epidemic. But the increase in losses expected in the commercial and industrial sectors is much lower. About $ 160bn of the loss came from retail sales and corporate debt.
Money more value and banned the sale of shares last year in the wake of the outbreak. The central bank officially released some in early 2021, but still reduces the amount of money that banks return to their shareholders more than four quarters of the previous quarter.
Money had already said it would go back The border is still awaiting the results of Thursday’s annual test results, which are important for Dodd-Frank’s economic laws introduced after the crisis.
Major banks have been encouraged by government incentives as well as revenues from sales and spending and their headquarters has also expanded due to the ban on shareholders.
The Fed expects banks to wait until Monday to review the results of the stress test before formulating all shareholding plans, according to Fed officials.
Barclays analysts estimate that the central bank of the 20 most successful corporations is repaying more than 100% of their income to shareholders next year, the amount returned to those approaching close to $ 200bn.
From these tests, the Fed will also pay each bank a small amount of CET1 funds on the required funds to keep the so-called capital buffer. The amount of CET1 that is tested against heavy-duty assets is an important component of economic stability.
Banks often have more money than they have less.
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