The Federal Reserve last week announced that 29 of 30 top U.S. banks have enough capital to continue lending through an economic crisis.
The results of this year’s stress tests showed continued strengthening at the banks since the financial crisis hit with force in 2008. Only Zions Bancorp failed to pass the government’s test, the Associated Press reported.
The tests, begun in 2009, assume unemployment of 11.25 percent, stocks at half their value and a 25 percent decline in home prices, the report said. The losses projected for each bank were then compared with their capital buffer.
Most of the banks tested, including JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo and Co., had at least $50 billion in assets.
Additionally, the Fed said the banks would lose less money under the test scenario because of the amount of defaulted and delinquent loans that have been shed since the crisis, according to the report.
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