In DFAST, banks clear 4.5% minimum but breach all-in buffers

Forty-three percent of participants would have seen capital plans rejected under pre-2020 CCAR regime, up from 30% last year

A larger proportion of banks dipped below their all-in capital buffer requirements in the Federal Reserve’s latest stress tests than in the two previous exercises – potentially portending adjustments to a swath of payout plans as executives seek to convince supervisors they can withstand even the direst of economic circumstances.

All 23 participants in this year’s Dodd-Frank Act stress test (DFAST) retained Common Equity Tier 1 (CET1) capital ratios above 4.5% – the minimum requirement for any