"We're pleased that an overwhelming majority of institutions once again passed these tests with flying colors. These results, achieved in the face of extreme assumptions and highly pessimistic scenarios, are further proof that the banking industry has rapidly regained its health and is strong enough to withstand even the most challenging economic circumstances. Capital levels are 25 percent higher than they were just five years ago, and total industry capital now stands at $1.6 trillion. We eagerly await next week's determination by the Federal Reserve, which will further illuminate how the results will affect banks' ability to pay dividends, which is so critical to raising capital and making loans.
"The discussion should now turn to how institutions can work with regulators to improve the process. The industry remains concerned that the black-box nature of these tests makes it difficult for banks to effectively improve how they manage their capital positions. We look forward to working with regulators to leverage this exercise in a manner that will help advance the supervisory process going forward."
The American Bankers Association represents banks of all sizes and charters and is the voice for the nation’s $14 trillion banking industry and its two million employees. Learn more at aba.com.