The ongoing uncertainty around the Covid-19 pandemic has prompted the US Federal Reserve Board to announce another round of bank stress tests to see how large banks stand up against two scenarios featuring severe recessions.
“The Fed’s stress tests earlier this year showed the strength of large banks under many different scenarios,” said Fed vice chair Randal Quarles.
“Although the economy has improved materially over the last quarter, uncertainty over the course of the next few quarters remains unusually high, and these two additional tests will provide more information on the resiliency of large banks.”
