The Federal Reserve's models projected average losses of 39% for large banks' riskiest credit card portfolios under the severely adverse scenario in the 2018 Dodd-Frank Act Stress Tests (DFAST). Participants in this year's round can expect loss estimates to be even greater because of the heightened severity of the 2019 scenarios.
On March 28, the Fed published details of the models used to estimate how participating banks' balance sheets, risk-weighted assets and net income would change under
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