Fed stress tests: foreign banks lag US on capital estimates

The US intermediate holding companies (IHCs) of foreign banks have been consistently worse at modelling their performance under the Federal Reserve’s stress tests than US banks over the past three years.

On average, IHCs missed the Fed’s estimates of the amount their Common Equity Tier 1 (CET1) capital ratios would fall in the 2018 test cycle by 213 basis points, compared with 109bp by US lenders. In 2017, IHCs misjudged the Fed’s estimates by an average of 129bp, versus an average of 99bp for

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here