US banks see record relief in stress capital buffers
Average buffer falls 62bp amid strong stress test showing
Half of the 31 US banks subject to the Federal Reserve’s stress capital buffer (SCB) regime saw their requirements reduced in the latest review, with the average buffer down by 62 basis points – the steepest drop since the framework was introduced in 2020.
The SCB 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
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