Infotech

Covid: Fed lifts restrictions on US banks



The way is clear for the big American banks. They have all passed the Fed’s annual stress tests, which will therefore lift the restrictions it had imposed on them during the Covid-19 pandemic. “Over the past year, the Federal Reserve has carried out three stress tests using different recession scenarios and all of them have confirmed that the banking system is very well positioned to support the ongoing economic recovery,” the deputy said. -Chairman of the Fed, Randal Quarles.

The 23 banks tested had capital well above required levels and had the capacity to continue lending to homes and businesses. In the worst-case scenario, with a severe global recession that would cause unemployment to exceed 10% in the United States for more than a year, banks would total losses of $ 470 billion and have capital ratios of 10.6%, more than double what is required.

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