Eleven banks fall below buffer requirements in latest DFAST

Goldman Sachs worst performer among 31 participating banks, with 450bp gap between stressed CET1 ratio and all-in capital requirements

This year’s Dodd-Frank Act stress test (DFAST) saw 11 banks drop below their all-in capital requirements under a severely adverse scenario, Risk Quantum analysis reveals.

All 31 participating banks maintained Common Equity Tier 1 (CET1) capital ratios above the 4.5% threshold set out by the Basel accords and used by the US Federal Reserve to assess whether banks can withstand an economic downturn.

However, more than a third of them were forecast to breach the full stack of buffers above their

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