Foreign banks outperform US peers on DFAST
Intermediate holding companies reported higher post-stress capital and leverage ratios under the Fed’s severely adverse scenario
Foreign banks subject to this year’s Federal Reserve stress tests outperformed their US peers on capital and leverage metrics, Risk Quantum analysis shows.
The US intermediate holding companies (IHCs) of the 10 foreign banks participating in the latest Dodd-Frank Act stress test (DFAST) reported higher median stressed ratios under the Fed’s severely adverse scenario compared with those of the 23 US firms.
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The IHCs reported a median Common Equity Tier 1 (CET1) capital ratio of 13.55%
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