Latest news with #USBanks
Yahoo
30-06-2025
- Business
- Yahoo
Bank stress tests: All 22 US banks pass Fed's health check
All 22 of the nation's biggest banks passed the latest Federal Reserve stress test. Yahoo Finance Senior Reporter Jennifer Schonberger reports the breaking details. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. We got some breaking news to get to, results from the Fed stress tests, they are out. And Yahoo Finance's Jennifer Schonberger is here with those results. Jen. Josh, results from the Federal Reserve stress test showed that 22 of the largest US banks could continue lending to households and businesses during a severe economic recession with plenty of capital on hand to absorb losses from loans. Now, these results demonstrate just how strong the US banking institutions are in our country and come on a week when the Federal Reserve and other financial regulators opted to propose changes to loosening a key capital requirement with expected changes coming on the stress test as well. Now, the stress tests were mandated annually by law after the financial crisis for banks with $100 billion or more in total assets. They examine how the banks would perform during a hypothetical severe recession to prevent bank failures in a crisis. This year applies only to banks with assets of $100 billion and above. Banks with assets of between 100 to $250 billion are subject every other year and they were subject last year. This year, the hypothetical scenario, less severe than last year, envisions a severe global recession where unemployment spikes to 10%, home prices plunged 33%, commercial real estate plummets 30%, and the stock market plummets 50% under that scenario. All 22 banks in aggregate would lose more than $550 billion. Yet, after covering losses, banks would still have capital left over equal to 11.6% of total assets weighted by risk. That is well above the 4 and a half percent that the Fed requires. Now, the hardest hit area under this hypothetical scenario was credit cards with losses amounting to $158 billion or about 28% of total loans lost. The second biggest category was commercial and industrial loans, which would have cost $124 billion or about 22% of total loans lost. Now, taking a look at how the nation's largest banks shake out, you can see all have capital that's more than double the Fed's minimum capital requirements. JP Morgan really leading the pack there with 14.2%, well above the 4 and a half percent the Fed requires. Now, taking a look at that those mid-sized regional banks, including PNC, Truist, M&T, also above the Fed's requirements, but not quite as high as their larger peers. Now, I just want to note that the decline in capital under this year's stress test was actually a little bit less than last year, and Fed officials chalk that up to volatility in the models, and that is something that they want to solve for for the stress test going forward. Fed officials looking at making changes to the stress test, expected to put out for comment the actual models that they use to cut down on the volatility. If they were to average results from last year and this year, banks actually would have stood to lose more capital, and that is something that they're seriously looking at averaging results going forward. Now, banks are going to use this information to decide how much capital they want to give back to shareholders in the form of dividends and share buybacks, and Josh, we could see those results as soon as next Tuesday. Thank you. All right. Thank you, Jen. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
Large US Banks Clear the Fed's Annual Stress Test
A group of large US banks comfortably cleared the Federal Reserve's annual stress test. The 22 banks subjected to this year's test all remained above minimum capital levels in a hypothetical recession. Sally Bakewell has more on "Bloomberg The Close."
Finextra
26-06-2025
- Business
- Finextra
GFT makes bank stablecoin play
Global digital transformation company GFT today announced its work to guide US-based banks as they launch their own stablecoin products. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. This work will take into account upcoming US regulatory considerations for payments stablecoins, ensuring compliance for organizations that choose to launch their own. GFT's decades of experience in decentralized finance, including its work with Standard Chartered Bank via its innovation, fintech and ventures arm SC Ventures, Deutsche Bank and launching the Universal Digital Payments Network (UDPN) Sandbox, will expedite US-based banks' ability to launch, manage and transact stablecoins. Now, banks will be able to bring new stablecoin products to market quickly–with minimum business disruption. Stablecoins have experienced substantial growth across the globe over the past year, reaching an adjusted transaction volume of $6 trillion, a 63% year-over-year increase. While banks like JP Morgan are venturing into decentralized payments technology to enhance transaction efficiency, for most banks, building stablecoins within the context of existing technology is tricky due to the vast array of technologies to choose from - even with the promise of federal regulation that will reduce risk. GFT works in tandem with the bank's existing core banking and payments ecosystems, such as Thought Machine, to launch compliant stablecoin products that not only meet their current needs, but also scale for the future. The new offering provides banks: • The right decentralized financial technology within their current ecosystem. By having a complete understanding of the bank's core banking system, payments ecosystem and the value the bank is looking to bring customers with stablecoins, GFT provides recommendations about what technology components the bank should leverage that will work alongside their existing systems without significantly altering established workflows. • A framework that meets current and evolving regulations. Recent federal regulatory advancements indicate there is a framework on the horizon for payment stablecoins, or coins backed by fiat currency to make transactions. While implementing the technologies specifically identified for each bank's unique technology environment and business needs, GFT ensures that the system can meet current policy expectations and can easily adapt as changes arise. • The ability to scale with demand and transaction value. As banks roll out their stablecoin offerings and create new products, the amount of funds and volume of transactions will increase, meaning banks will need to scale their ability to transact stablecoins over time. Each project GFT works on is designed with scalability in mind. 'A regulatory framework for stablecoins is good news for banks, as they can now safely launch stablecoin products to create value for their customers through more efficient transactions,' said Christopher Ortiz, GFT Region Manager North America, APAC and UK. 'Over the last decade we have enabled banks around the world to take advantage of decentralized finance. As U.S. regulations now open up this market to stateside banks, we are ready to use our in-depth expertise to support US banks as they look to launch stablecoin products and services.' GFT's experience launching decentralized finance projects across Latin America, Europe and Asia has informed the launch of its new US-based offering.
Washington Post
25-06-2025
- Business
- Washington Post
Iranian-backed hackers go to work after US strikes
WASHINGTON — Hackers backing Tehran have targeted U.S. banks, defense contractors and oil industry companies following American strikes on Iranian nuclear facilities — but so far have not caused widespread disruptions to critical infrastructure or the economy. But that could change if the ceasefire between Iran and Israel collapses or if independent hacking groups supporting Iran make good on promises to wage their own digital conflict against the U.S., analysts and cyber experts say.
Free Malaysia Today
20-06-2025
- Business
- Free Malaysia Today
Syria expects first transfer with US bank ‘within weeks', says governor
The Syrian central bank has extended a formal invitation to US banks to re-establish correspondent banking ties. (EPA Images pic) DAMASCUS : Syria expects to have its first transaction with a US bank 'in a matter of weeks', Syrian central bank governor Abdelkader Husriyeh said today, a day after a high-level meeting between Syrian and US commercial banks. The resumption of transfers between Syrian and US banks would be a key milestone in the push by Syria's new rulers to reintegrate the country into the global financial system after 14 years of civil war. Yesterday, Husriyeh held a virtual conference bringing together Syrian banks, several US banks and US officials, including Washington's Syria envoy Thomas Barrack, with the aim of speeding up the reconnection of Syria's banking system to the global financial system. This follows US President Donald Trump's announcement in May that all sanctions on Syria would be lifted. That has been followed up with executive orders formally lifting some of the measures. Syria's reintegration into the global financial system would be a major step towards enabling the kind of large financial transactions needed to kickstart its reconstruction and economic activity, and help rein in a highly informal, cash-based economy. Husriyeh extended a formal invitation to US banks to re-establish correspondent banking ties following the ouster of former Syrian strongman Bashar al-Assad, whose crackdown on 2011 protests resulted in Western countries imposing one of the world's strictest sanctions regimes. 'We have two clear targets: have US banks set up representative offices in Syria and have transactions resume between Syrian and American banks. 'I think the latter can happen in a matter of weeks,' Husriyeh told Reuters. Among the banks invited to yesterday's conference were JP Morgan, Morgan Stanley and CitiBank, though it was not immediately clear who attended.
