Forum President & CEO says, “Put simply, the largest banks have strongly supported the economy during a real-life stress test in 2020.”
CONTACT: Barbara Hagenbaugh
Washington, D.C. – Financial Services Forum President and CEO Kevin Fromer issued the following statement today after the Federal Reserve issued results from its latest round of stress tests, known as the Comprehensive Capital Analysis and Review (CCAR):
“The Federal Reserve has once again found that the nation’s largest banks are strong, safe and positioned to actively support the U.S. economy even during a severe economic downturn. The results reflect what we have seen throughout 2020 – that the nation’s largest banks can be a key source of support for businesses and consumers while at the same time remaining strong and healthy in the face of significant economic headwinds.
“The Federal Reserve’s stress testing is a central component of the post-crisis bank regulatory and supervisory framework, intended to measure the resiliency of large banks during a severe downturn. Along with heightened capital and liquidity requirements for the largest banks, the framework in the United States has strengthened in recent years.
“The members of the Financial Services Forum this year have increased capital and strengthened their liquidity positions while at the same time boosting lending, accepting a surge in deposits and dispersing billions of dollars in loans to more than 850,000 small businesses through the Paycheck Protection Program. Further, they have helped to raise trillions of dollars in corporate bonds and equity for U.S. companies, allowing them to continue to pay their workers, operate their businesses and meet their funding needs.
“Put simply, the largest banks have strongly supported the economy during a real-life stress test in 2020. The strength of the nation’s largest banks positions them to continue to support the economy in the months and years ahead. The Forum’s members will continue to work to build a durable and inclusive recovery in 2021.”
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.