Fed’s latest report says banking system sound
In the Federal Reserve’s most recent Supervision and Regulation Report, the U.S. banking system is sound and resilient, however, commercial real estate remains an area of concern for some banks.
The biannual report highlighted that most banks maintained capital levels exceeding regulatory requirements. Over 99% of banks were classified as well-capitalized during the second quarter, with Federal Reserve stress tests indicating that large banks are well-prepared to withstand a severe recession. Additionally, banks with total assets under $100 billion continued to demonstrate robust regulatory capital levels. The biannual report highlighted that most banks maintained capital levels significantly exceeding regulatory requirements. Over 99% of banks were classified as well-capitalized during the second quarter, with Federal Reserve stress tests indicating that large banks are well-prepared to withstand a severe recession.
Additionally, banks with total assets under $100 billion continued to demonstrate robust regulatory capital levels. See the full report here.