CONTACT: Barbara Hagenbaugh

(202) 457-8783

bhagenbaugh@fsforum.com

 

Forum members again show they can support the economy even in the face of significant economic headwinds, Forum CEO says

Washington, D.C. – Financial Services Forum President and CEO Kevin Fromer issued the following statement today in response to the Federal Reserve Board’s 2022 stress test results:

“Today’s results once again underscore the strength and resiliency of the nation’s largest banks. Forum members again have shown that they can act as a bulwark for the economy even in the face of significant economic headwinds.

“The scenarios used in this year’s test represent a continuation of the highly rigorous standards applied to the largest banks in the United States. Since 2010, the U.S. Global Systemically Important Banks (GSIBs) have increased their Tier 1 capital, which acts as a buffer against losses, by 50 percent to $981 billion. This strength positioned them during and after the pandemic – a real-life stress test – to support individuals, small businesses, major companies, and communities across the country. Forum members continue this support as the nation faces a period of economic uncertainty.

“This year marks the 13th year since the Federal Reserve initiated bank stress tests. The exercise remains a central component of the post-crisis bank regulatory and supervisory framework and regulators continue to test banks against hypothetical scenarios far more severe than those seen during the financial crisis. Indeed, the robust regulatory environment remains firmly intact and continues to promote the strength of the nation’s largest banks and their critical support of our economy.”

 

###

 

The Financial Services Forum is an economic policy and advocacy organization whose members are the chief executive officers of the eight largest and most diversified financial institutions headquartered in the United States.  Forum member institutions are a leading source of lending and investment in the United States and serve millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, financial inclusion, deep and liquid capital markets, a competitive global marketplace, and a sound financial system.

 

Visit our website: fsforum.com

Follow us on Twitter @fsforum and LinkedIn