The #federalreserve published yesterday it’s report showing 23 selected banks #stresstest under the “severely adverse scenario”. The details of the test have not been revealed, only the conclusions, and, surprisingly (ironic tone), our banks are incredibly strong. Under the stress test scenario, as you can see in the table below, the CET1 ratio goes down from 12.4 to 10.1, only to get back up to 10.7 because the storm cannot last forever. The best part is that, while this is being published, the #btfp, the program the fed created after the failure of #svb on March this year, to help those banks losing deposits to stabilize their liabilities, is printing a new maximum at $102Bn. If it wasn’t for that program, we would probably see more failures, and yet, they conclude our banking system is safe. Vive la différence!
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Source: 2023 Federal Reserve Stress Test Results
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