Barclays and Credit Suisse’s stress test estimates stray from Fed’s
The two banks miss the mark on stressed capital ratio by 290bp and 460bp, respectively
Federal Reserve stress test debutantes Barclays US and Credit Suisse USA were worse at modelling their performance than veterans of the process.
Credit Suisse USA overshot the Fed’s estimates of its stressed Common Equity Tier 1 (CET1) capital ratio in the 2018 test cycle by 460 basis points, and Barclays US by 290bp – the biggest differences out of the 18 participating ‘advanced approaches’
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