Overview

• Twenty-two large banks retained an average 11.6% common equity tier 1 ratio, more than double the 4.5% regulatory minimum.
• The 2025 scenario assumed a 30% drop in commercial real estate values, a 33% decline in home prices and a rise in unemployment to 10%, producing over $550 billion in hypothetical losses.
• Fed officials said banks can announce capital plans, including share repurchases and dividend payouts, as soon as next week.
• This year’s test was less severe than in 2024, with smaller asset‐price declines and limited stress on private equity and private credit exposures.
• The Fed plans to finalize reforms by year-end that will average outcomes across two years and publish its stress scenarios and models for public feedback.