Fed hikes stress capital buffers for 18 US banks
Nine dealers face record-high SCBs as poor performance in latest DFAST weighs on capital requirements
More than half of the major US banks have been slapped with higher stress capital buffers (SCBs) in the Federal Reserve’s latest review of capital requirements.
The SCB, introduced in 2020, is determined by the maximum depletion of a bank’s Common Equity Tier 1 (CET1) ratio in the Dodd-Frank Act stress test (DFAST), plus an add-on covering four quarters of planned dividends.
Of the 32 banks
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