At top US banks, stress test capital hit driven by dividends

Most US banks projected their core solvency ratios would erode under the Federal Reserve’s latest stress test. But for some, the largest driver of capital loss was not the effects of the Fed scenario itself, but their own plans to pay dividends to shareholders.

Each bank that participated in the latest Dodd-Frank Act stress tests (DFAST) had to estimate what their Common Equity Tier 1 (CET1) capital ratio would look like following the nine-quarter severely adverse scenario cooked up by the Fed

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

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: