Foreign banks perform better in 2021 Fed stress tests 

Intermediate holding companies reported higher post-stress capital and leverage ratios than their US peers did

Foreign banks that underwent this year’s Federal Reserve stress tests outperformed their US peers on capital and leverage metrics.

All 23 participants to the Fed’s severely adverse scenario hurdled the test. However the US intermediate holding company (IHC) of nine foreign banks reported higher stressed ratios compared with those of the 14 US firms.

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The IHCs reported a median Capital Equity Tier 1 (CET1) capital ratio of 15.2%, compared with 10.3% for the US banks.

The median Tier 1

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