June 24, 2024 – 6:57 AM PDT
WASHINGTON (Reuters) – Big U.S. lenders are expected to show they have ample capital to weather any renewed turmoil during this week’s Federal Reserve health checks, but will be conservative on investor payouts amid economic and regulatory uncertainties, analysts said.
Advertisement
The central bank on Wednesday will release the results of its annual bank “stress tests” which assess how much cash lenders would need to withstand a severe economic downturn and how much they can return to investors via dividends and share buybacks.
The results come a year after three large banks failed and as higher Fed interest rates continue to squeeze regional lenders’ margins and their commercial real estate (CRE) portfolios. Weakening consumer demand has also dampened sentiment on the trajectory of the economy.
With more mid-sized banks in the mix this…
