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Federal Reserve weighs bank dividends as it prepares second stress test

The central bank said it will release the results of the new analysis by the end of 2020

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The Fed previously published stress test results in June, which found that banks would face heavy losses from hypothetical pandemic-driven lockdowns, but mostly retain necessary capital cushions

Reuters Washington

2 min read Last Updated : Sep 18 2020 | 2:56 AM IST

The US Federal Reserve said on Thursday it would decide by the end of September if it would continue capping bank dividend payments and laid out two hypothetical severe recessions it will use to test further big bank resilience amid the coronavirus pandemic.

The central bank said it will release the results of the new analysis by the end of 2020. The upcoming test marks an unprecedented second stress test in a year for the Fed, which said the "continued uncertainty" from the pandemic made it necessary to keep testing bank resilience.

The upcoming results will mark the first time

Topics : Coronavirus US Federal Reserve Jerome Powell US economy United States

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