US Fed says large banks in good shape to weather severe recession
Major U.S. banks are well prepared and resourced to deal with a severe recession and continue lending to households and businesses, the Federal Reserve said on June 24.
All 32 large banks subjected to the Fed's annual "stress test" exercise were found to have passed, maintaining more than the minimum required liquidity in the test.
"Despite absorbing more than $708 billion in total loan losses under this year's hypothetical scenario, capital declined only 1.6 percentage-points in aggregate, staying above minimum capital requirements," a Federal Reserve statement said.
Last year's stress test had seen 22 banks tested against $550 billion in losses, a similar level of severity. All 22 passed in 2025 as well.
