Summary

• Projected losses dropped for the second year in a row in this year's Federal Reserve stress test compared to the year prior, to the lowest level in at least seven years.
• Across the 32 banks in the stress test, the aggregate common equity Tier 1 ratio fell by a maximum of 1.6 percentage points, compared with 1.8 percentage points last year.
• The Fed decided to keep banks' existing SCBs in place until 2027 as it seeks to implement a process for incorporating public feedback on the models it uses under a proposal from 2025.

Projected losses dropped for the second year in a row in this year's Federal Reserve stress test compared to the year prior, to the lowest level in at least seven years.

Across the 32 banks