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Bank Stress Tests ‘Much Bigger Surprise Than Expected,’ Will Delay Future Investment Plans: JPMorgan

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A JPMorgan analyst has reacted to the Federal Reserve’s annual stress test results for U.S. banks, which assess their resilience by estimating losses, revenues, expenses, and capital levels under various economic scenarios. The results were announced on Wednesday.

Key Insights: Analyst Vivek Juneja recapped the stress test for large-cap banks, with the results being a “much bigger surprise than expected.”

The tests returned a substantial increase in stress capital buffers (SCB) at the majority of large-cap banks, leading to a corresponding increase in capital requirements.

“We expect this sharp increase in capital requirements may delay or reduce long term capital return plans. All our banks comfortably exceed their minimum requirements and should benefit from further accretion of OCI losses. However, the money center banks in our universe will now have …

Full story available on Benzinga.com

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