WASHINGTON, - The U.S. Federal Reserve is due to release the results of its annual bank health checks on Wednesday at 4:00 p.m. ET (2000 GMT). Under the "stress test" exercise, the Fed tests big banks' balance sheets against a hypothetical scenario of a severe economic downturn, the elements of which change annually.
Usually, the results are a big deal because they dictate how much capital those banks need to set aside to be healthy, and how much they can return to shareholders via share buybacks and dividends. Coming amid a sweeping overhaul of capital rules led by President Donald Trump's bank regulators, this year's tests will not change capital levels, although they will still offer insight into the health of the banking system.
