US banks more cramped by stress tests than global peers

Stress tests shape capital buffers at US banks to a far greater extent than they do in other countries, research by the Basel Committee suggests.

Five out of six US banks surveyed by the committee said stress test results dictate the size of their Tier 1 capital buffers. In contrast, just 12 out of 59 European Union dealers, and 24 out of 72 dealers in other countries, said the same.

The Tier 1 capital buffer is the amount of high-quality capital a bank holds above its statutory Pillar I requ