"meanwhile the central banks are possibly prepping for a 55% drop in equities. Fed to test banks’ ability to withstand 55% fall in equity prices"
Laws & Regulations SEC & Regulatory Body.
What Is a Bank Stress Test?
A bank stress test is an analysis conducted under hypothetical scenarios designed to determine whether a bank has enough capital to withstand a negative economic shock. These scenarios include unfavorable situations, such as a deep recession or a financial market crash. In the United States, banks with $50 billion or more in assets are required to undergo internal stress tests conducted by their own risk management teams and the Federal Reserve.
