Here are the Banks That Were Required to Participate in the Federal Reserve’s 2022 Stress Test
Posted on 06/24/2022
The Federal Reserve reports in its “2022 Federal Reserve Stress Test Results” that, “The 2022 stress test shows that large banks have sufficient capital to absorb more than $600 billion in losses and continue lending to households and businesses under stressful conditions. In large part, this is due to the substantial buildup of capital since the 2007–09 financial crisis.”
The link to the report is here: https://www.federalreserve.gov/publications/files/2022-dfast-results-20220623.pdf.
A total of 34 banks are required to participate in this year’s stress test. In 2021, 23 banks participated in the stress test because the smallest banks subject to the supervisory stress test are generally only required to participate in the test every other year. As part of its supervision efforts, the Federal Reserve conducts annually a supervisory stress test. The stress test assesses how large banks are likely to perform under a hypothetical recession.
Banks Required to Participate for 2022
Ally Financial Inc., Category IV
American Express Company, Category IV
Bank of America Corporation, Category I
The Bank of New York Mellon Corporation, Category I
Barclays US LLC, Category III
BMO Financial Corp., Category IV
BNP Paribas USA, Inc., Category IV
Capital One Financial Corporation, Category III
The Charles Schwab Corporation, Category III
Citigroup Inc., Category I
Citizens Financial Group, Inc., Category IV
Credit Suisse Holdings (USA), Inc., Category III
DB USA Corporation, Category III
Discover Financial Services Category, IV
Fifth Third Bancorp, Category IV
The Goldman Sachs Group, Inc., Category I
HSBC North America Holdings Inc., Category IV
Huntington Bancshares Incorporated, Category IV
JPMorgan Chase & Co., Category I
KeyCorp, Category IV
M&T Bank Corporation, Category IV
Morgan Stanley, Category I
MUFG Americas Holdings Corporation2, Category IV
Northern Trust Corporation, Category II
The PNC Financial Services Group, Inc., Category III
RBC US Group Holdings LLC, Category IV
Regions Financial Corporation ,Category IV
Santander Holdings USA, Inc., Category IV
State Street Corporation, Category I
TD Group US Holdings LLC, Category III
Truist Financial Corporation Category, III
UBS Americas Holding LLC, Category III
U.S. Bancorp, Category III
Wells Fargo & Company, Category I
Source: Federal Reserve.
Note: The banks in this table are required to participate in the 2022 stress test. In addition to DB USA Corporation, DWS USA Corporation, a second U.S. intermediate holding company subsidiary of Deutsche Bank AG, is subject to the 2022 stress test. 1 Category I banks are the U.S. global systemically important banks (G-SIBs); Category II banks are those with at least $700 billion in total assets or at least $75 billion in cross-jurisdictional activity and that do not meet the criteria for Category I; Category III banks are those with at least $250 billion in total assets or at least $75 billion in nonbank assets, weighted short-term wholesale funding, or off-balance sheet exposure and that do not meet the criteria for Category I or II; and Category IV banks are those with at least $100 billion in total assets and that do not meet the criteria for Category I, II, or III. 2 Due to certain accounting reclassifications by MUFG Americas related to a pending divestiture, the Board determined not to include MUFG Americas’ detailed projections in the 2022 stress test. The Board conducted an evaluation and determined that MUFG Americas has sufficient capital to absorb losses and continue to serve as a credit intermediary under a severe recession.
Keywords: Federal Reserve System.
