According to the US Federal Reserve (FED), the largest monetary houses in the United States have crisis-proof capital equipment.
All tested 22 institutes passed the annual stress test of the financial supervisors, as the Fed announced on Friday in Washington. The Deutsche Bank also had no problems with its US branch in the test with simulated crisis scenarios.
Each institute remained with a hypothetical recession above its minimum capital requirements, it said. Overall, the banks would have lost more than $ 550 billion in this scenario. The proportion of hard core capital (Common Equity Tier 1 Capital – CET 1) would have fallen to 11.6 percent, significantly more than the 4.5 percent considered by the supervisors.
This year’s scenario was less serious due to the anti -cyclical design of the test than last year. There is a severe global recession with a 30 percent decline in prices for commercial properties and a decline in house prices by a third. The unemployment rate increased by almost 5.9 percentage points at the top, and economic output decreased accordingly.
The leaders’ supervisors want to ensure that the lending to companies and households does not stall abruptly in a crisis. It is a consequence of the serious financial crisis in 2008 and is intended to ensure that banks are prepared for emergencies and do not have to be saved again with tax money.
For many of the large banks, the annual examination is also crucial for whether and to what extent money can be distributed to investors using dividends or stock returns.
Due to the Corona crisis, the FED had particularly meticulously checked the balance sheets of the money houses in recent years and temporarily imposed strict requirements for the preservation of the money reserves. Share returns and dividend increases were temporarily taboo or strict editions.
Deutsche Bank has meanwhile had a difficult stand with its US business with the overseers and from 2015 to 2018 has been carried out several times at the stress test. In contrast to the US rivals, the dividends and stock returns do not depend on the test result in the case of daughters of foreign monetary houses, but the profit distributions to their corporate mothers.
/jha/
Washington (dpa-Afx)
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