Factbox: Adverse scenario for U.S. bank stress tests

Fri Mar 18, 2011 11:53am EDT

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(Reuters) - The Federal Reserve on Friday released the results of its most recent stress test of the 19 largest U.S. banks, saying some of them will be allowed to boost or restart dividend payments.

The Fed did not give firm-specific results for the group of banks, which includes Bank of America, Goldman Sachs, JPMorgan Chase, American Express and Wells Fargo, unlike its 2009 assessment used to shore up confidence in the U.S. financial system.

As part of the 2011 test, the government assessed banks' ability to pay dividends and repurchase shares and still maintain sufficient capital in stressed economic environments.

Below are details of the adverse economic conditions the Fed used to test the durability of banks' financial health:

2011:

Real GDP*: -1.5

Unemployment Rate**: 11.0

National House Price Index*: -6.2

Equity Price Index*: -27.8

2012:

Real GDP: 2.4

Unemployment Rate: 10.6

National House Price Index: -4.1

Equity Price Index: 36.9

2013:

Real GDP: 3.4

Unemployment Rate: 9.6

National House Price Index: 2.7

Equity Price Index: 15.9

* Percent change over the four quarters ending in the fourth quarter of the year indicated

** Level in fourth quarter of year indicated

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