29-June-2025
Economy News
 
Fed Says Banks Can Withstand Economic Downturn, Clears Way for Dividend Hikes
28-Jun-2025

Twenty-two of the largest banks in the U.S. are well-positioned to weather a hypothetical severe economic downturn and continue lending, with firms maintaining robust capital levels even after suffering hundreds of billions of dollars in losses, the Federal Reserve reported on Friday. The results of the U.S. central bank's annual "stress test" of large banks' finances found firms remain resilient in the face of a potential recession, a spike in unemployment, and market turmoil. The optimistic showing could lead to banks upping how much excess capital they plan to distribute to shareholders via dividends or stock buybacks.

News Source:- https://money.usnews.com/investing/news/articles/2025-06-27/fed-says-banks-resilient-in-hypothetical-downturn-clearing-way-for-capital-plans