Big U.S. banks sailed through the Federal Reserve's annual health check on Wednesday, in a vote of confidence for a sector still recovering from turmoil earlier this year and facing an uncertain economic outlook.
, have enough capital to weather a severe economic slump, paving the way for them to issue share buybacks and dividends.
Among the top performers were Charles Schwab Corp. and Deutsche Bank's U.S. operations, while regional lenders Citizens Financial Corp. and U.S. Bancorp were the laggards of the pack. The average capital ratio - a measure of the cushion banks have to absorb potential losses - for the country's eight "globally systemically important banks" stood at 10.9%, up slightly from last year, according to a Reuters analysis.Banks' commercial real estate portfolios performed, showing $65 billion in losses or 8.8% of average loan losses, slightly down on last year's 9.8%, the Fed said.
Lenders will now be allowed to return excess capital to shareholders, although analysts expect payouts to be slightly lower this year due to economic uncertainty and impending new capital rules.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Federal Reserve says 23 biggest banks weathered severe recession scenario in stress testBegun in the aftermath of the 2008 financial crisis, the Fed's annual stress test dictates how much capital the industry can return to shareholders.
Leer más »
US economy 'quite resilient,' Fed Chair Jerome Powell saysFederal Reserve Chair Jerome Powell is voicing an optimistic message about the U.S. economy and downplaying the threat of a recession.
Leer más »
Forex Today: Central bank heavyweights take center stage in SintraHere is what you need to know on Wednesday, June 28: Federal Reserve (Fed) Chairman Jerome Powell, European Central Bank (ECB) President Christine Lag
Leer más »
USD/CAD soars on Powell’s remarks and soft Canadian CPIUSD/CAD climbed sharply on Wednesday, helped by the US Federal Reserve (Fed) Chair Jerome Powell’s remarks at the European Central Bank (ECB) Sintra e
Leer más »
Explainer: How does the Fed stress test US banks?The U.S. Federal Reserve is due to release the results of its annual bank health checks on Wednesday at 4:30 p.m. ET (2030 GMT). Under the stress test exercise, the Fed tests big banks' balance sheets against a hypothetical severe economic downturn, the elements of which change annually.
Leer más »
City of Parma Heights, Western Reserve Area Agency on Aging host grocery giveawayThe giveaway will take place Wednesday at Kurtz Park in Parma Heights from 2 to 5 p.m.
Leer más »