The Federal Reserve released its latest bank stress test results, showing that major US banks can collectively withstand approximately $708 billion in losses under a hypothetical severe recession scenario while continuing to extend credit to households and businesses, according to CNBC.

The stress test accompanies significant capital rule reforms. The Fed plans systematic adjustments to bank capital adequacy requirements to better reflect current financial system risk characteristics, a reform direction closely watched by the banking industry.

Editor: GoodInfo Global News Team