The Federal Reserve Board has announced that the results of its annual bank stress test will be released on Friday, June 27, at 4:30 p.m. EDT. This announcement was made on Friday and accompanies the publication of the Board's annual stress test methodology document, which outlines the models employed in conducting the stress test.
The Board uses this stress test as a tool to determine whether banks possess sufficient capital to withstand losses while continuing to lend to households and businesses during a severe recession. The test evaluates the resilience of banks by estimating potential losses, net revenue, and capital levels under a hypothetical recession scenario.
This year, 22 large banks were included in the Board's stress test. The scenario considered for this year's test involves a severe global recession with increased stress in commercial and residential real estate markets, as well as corporate debt markets.
Additional information is available here.