US Federal Reserve releases scenarios for bank stress tests

The US Federal Reserve has released the economic scenarios, including a hypothetical sharp slowdown in China, that the biggest banks will use in the next round of stress tests to determine how they would withstand a financial shock.

Regular stress tests are part of a more rigorous regime required by the 2010 Dodd-Frank financial oversight law. They are designed to that ensure banks have enough capital cushions and are not being overly aggressive in returning cash to shareholders.

via Business feed http://www.scmp.com/business/banking-finance/article/1083732/us-federal-reserve-releases-scenarios-bank-stress-tests