CBA Statement on 2023 Federal Reserve Stress Test Results

 Consumer Bankers Association (CBA) President & CEO Lindsey Johnson today released the following statement after the Federal Reserve announced the results of the agency’s annual stress tests, which assess the ability of large financial institutions to weather severe economic uncertainty:

“Today’s results confirm America’s leading banks remain resilient, well-capitalized and fully capable of continuing to serve consumers and small businesses. Recognizing this year’s scenario was the most difficult on record, these outcomes are the best antidote to any lingering anxiety surrounding recent bank failures. Moving forward, CBA will continue to work in tandem with industry leaders and policymakers to bolster the trust and confidence Americans have in our well-regulated banking system.”

CBA Advocacy

• Speaking in May at the Exchequer Club of Washington, D.C., Johnson reiterated that the market volatility observed earlier this year was fueled largely by emotion and misinformation not indicative of the strong underlying fundamentals of the vast majority of banks today. 
• During an interview on Fox Business, Johnson expressed confidence in the strength and resiliency of America’s leading banks while also reassuring consumers that their hard earned deposits are safe and secure.  
• Following the release of several reports examining bank failures this spring, Johnson said: “we – members of Congress, regulators, and the industry – have a responsibility to work together to support the consumers we all serve, and that's exactly what our members will continue to do.” To read the full statement, click HERE.

Background

The Federal Reserve's stress test assesses whether banks are sufficiently capitalized to absorb losses amidst stressful economic conditions while remaining fully capable of lending to consumers and small businesses, even in a severe recession. The Board's stress tests evaluate the resilience of large financial institutions by estimating losses, net revenue, and capital levels—which provide a cushion against losses—under hypothetical recession scenarios that extend more than two years into the future. To learn more about today’s stress test results, click HERE.