Foreign dealers still lag US banks in stress tests
IHCs’ CET1 depletion triples that of domestic participants, despite improved performance since 2024 exercise
Foreign-owned US intermediate holding companies (IHCs) again fared worse than their US peers in the Federal Reserve’s latest stress test, fitting a pattern observed through several past exercises.
The six IHCs subject to this year’s Dodd-Frank Act stress test (DFAST) experienced a median depletion of 4.5 percentage points in their Common Equity Tier 1 (CET1) capital ratios at their lowest point
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