JPMorgan Chase CEO Jamie Dimon and other big-bank chief executives have been speaking about how they plan to manage higher capital requirements following the Federal Reserve’s recent stress tests.
This year’s stress-test results show large banks have more than enough capital to deal with a major economic crisis, but their capital requirements will likely go up anyway. That has some observers and industry officials concerned credit will tighten even as the economy teeters on the edge of recession.
The Federal Reserve had made it easier for financial institutions facing COVID-19-related pressures to comply with the supplementary leverage ratio. The central bank ended that break last spring, but the industry says the market distortions that originally prompted Fed action persist.
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