The Federal Reserve released the results of the 2023 stress test, which shows that the 23 large banks subject to the test this year have sufficient capital to absorb more than $540 billion in losses and continue lending to households and businesses under stressful conditions.
Bank capital has remained largely level for the past few years. The aggregate and individual bank post-stress common equity tier 1 (CET1) capital ratios remain well above the required minimum levels throughout the projection horizon.
Aggregate common equity capital ratio for 23 banks in the 2023 stress test:
