Results Underscore Strength, Safety & Resiliency of Nation’s Largest Banks
CONTACT: Barbara Hagenbaugh
WASHINGTON, D.C. – Financial Services Forum President and CEO Kevin Fromer issued the following statement today in response to the Federal Reserve Board’s 2020 Comprehensive Capital Analysis and Review (CCAR) results:
The stress test results underscore the strength, safety and resiliency of the nation’s largest banks. Financial Services Forum members again have proven that they can absorb losses and continue to support U.S. businesses and consumers during a time of severe financial stress.
“Indeed, we are seeing on-the-ground evidence of the strength and resiliency of the nation’s largest banks as our economy suffers an enormous strain from the COVID-19 pandemic. Our member firms have assisted customers by providing temporary relief for mortgage, car and credit card payments, refunding fees and providing other forms of relief. Forum members have supported businesses of all sizes by increasing our lending by 15 percent in the first quarter, an unprecedented rate, helped companies raise capital in public markets and provided more than 773,000 PPP loans to small businesses so that they can pay their employees and maintain operations. And total deposits at Forum institutions rose more than 13 percent in the first quarter, as our firms have provided an important service to individuals and businesses in these uncertain times.
“As the Federal Reserve showed in its stress tests, the nation’s largest banks are able to provide this support to the economy while remaining strong and safe. The eight members of the Financial Services Forum swiftly acted on March 15 to temporarily suspend buybacks. Forum members appreciate the Federal Reserve’s work to promote financial stability during such extraordinary economic uncertainty and understand its decision regarding capital returns through the third quarter.
“As the Federal Reserve conducts further analyses on the individual capital position of each firm, it will be important to provide transparency to institutions and the public. We look forward to continuing to fulfill our commitment to supporting businesses and consumers in the weeks, months and years ahead.”
The Financial Services Forum is an economic policy and advocacy organization whose members are the chief executive officers of the eight largest and most diversified financial institutions headquartered in the United States. Forum member institutions are a leading source of lending and investment in the United States and serve millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, deep and liquid capital markets, a competitive global marketplace, and a sound financial system.