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Stress Exams Nonetheless Taking place, Banks To Get Particular Deal with If They Cross

The dangerous information is that, in contrast to each different examination on the earth, these financial institution stress exams are nonetheless on. The excellent news is meaning U.S. banks—in contrast to their benighted European friends—will in all probability be allowed to maintain paying dividends.Fed officers are unlikely to take action, a minimum of within the brief time period. They see key variations in how lenders distribute capital on the 2 continents, they usually plan to conduct a extra deliberate evaluation of the U.S. banking system’s well being, the individuals mentioned.Cleveland Fed President Loretta Mester mentioned she prefers to await the outcomes of the subsequent set of the banks’ “stress exams” in June earlier than deciding whether or not to restrict dividend funds. Feels like a wise deployment of sources with the economic system having screeched to a halt amidst a worldwide pandemic throughout.Fed Unlikely to Order Massive U.S. Banks to Droop Dividends [WSJ]

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Jung Min-seo


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