stress tests

Banks can repurchase shares again. Will they?


Under the Federal Reserve’s loosened restrictions, big banks can buy back a limited amount of their stock starting next quarter, but only JPMorgan Chase has announced detailed plans to do so.


Fed extends dividend restrictions after stress test results


The Federal Reserve's “mid-cycle” assessment — conducted in light of the uncertainty posed by COVID-19 — showed that several banks would maintain just the bare minimum level of capital under hypothetical scenarios.


Banks’ billions in payouts hinge on Fed’s view of the pandemic


As with most things related to 2020, COVID-19 will be a deciding factor as the Federal Reserve considers whether banks are able to increase their dividends or resume share buybacks.


Bank CEOs more upbeat about 2021 as vaccines emerge


Executives from U.S. banks continue to play down near-term expectations, but they say customers are growing more confident ahead of the rollout of coronavirus vaccines, and that key commercial lending segments could drive an economic rebound.


Climate risk test asks banks to look too far down the road


Global regulators are considering a universal stress test for climate change that requires lenders to use a 30-year horizon, a difficult and speculative projection of the energy industry that could harm bank financials.


State regulator group offers guidance for mortgage servicing oversight


The proposed best practices would be modeled after federal servicing standards and be used to supervise nonbanks firms subject to state regimes.


Fed aims to give less complex banks relief in capital planning rule


The central bank issued a proposal aligning recent stress testing changes with supervisory standards that are tailored to an institution's size and complexity.


Fed will extend freeze on stock buybacks, cap on dividends


The Federal Reserve will continue its ban on share repurchases for banks with more than $100 billion of assets into the fourth quarter and will cap dividend payments using a formula based on recent income.


Pressure mounts on U.S. bank regulators to stress test for climate change


Lenders should be subjected to tough reviews of their readiness for economic threats posed by severe weather, required to disclose risks lurking in their portfolios and perhaps forced to set aside extra capital, a government study recently recommended.


Fed offers details on additional bank stress test triggered by COVID-19


The agency has scheduled an extra assessment of institutions' strength to incorporate more recent economic data during the pandemic.