WASHINGTON —The Federal Reserve set March 26 as the date it will release its closely watched “stress test” results for 30 large banks’ capital plans.
The date will be a important for bank investors because an objection to a capital plan by the Fed impedes the ability for a bank to pay dividends or make share repurchases. The Fed each year analyzes how the largest banks would weather a stress-test scenario simulating poor economic conditions in the future.
The Fed on Tuesday also said it would release the results of a separate set of stress tests required under the 2010 Dodd-Frank law on March 20. The Dodd-Frank stress tests provide some indication of a firm’s strength but take a more generic approach and don’t take into account the individual capital plans of each bank.
