HSBC exhausts leverage headroom in Fed stress tests

Goldman Sachs worst performer among US banks

A severe recession would deplete the leverage headroom of HSBC’s US intermediate holding company (IHC), leaving it with no extra buffer on top of the regulatory minimum, the latest Federal Reserve stress test shows.

HSBC North America’s Tier 1 leverage ratio was forecast to fall as low as 4% over a three-year severe economic downturn from a starting point of 9.7% at end-2021, a close-call that could lead to restrictions on dividends. The ratio was projected to recover to 8.5% by the Q4 2024 end

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.

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

If you already have an account, please sign in here.

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: