The Fed Plans to Test Banks’ Response to Negative Interest Rates

The Federal Reserve has announced its plans to test the ability of the country’s largest banks to weather a prolonged period of negative interest rates.

As reported in Bloomberg Business, the Fed wants reassurance from this year’s stress test that these banks can withstand the economic scenarios typical of a severe global recession, which could be accompanied by three-month bill rates falling below zero for three years.

Read more about this year’s stress tests in Bloomberg Business.

The experts at Financial Risk Group are uniquely positioned to help banks test their vulnerabilities. Contact us today for more information.

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