Key facts
- Projected minimum Common Equity Tier 1 (CET1) ratios for large US banks have increased since 2018.
- The projected minimum CET1 ratios have become more tightly clustered.
- For 16 firms participating in every stress test, the median projected minimum CET1 ratio rose from 7.7% in 2018 to 11.6% in 2026.
Large US banks' projected minimum Common Equity Tier 1 (CET1) ratios in the Federal Reserve’s annual stress tests have risen and become more tightly clustered since 2018, a Risk Quantum analysis of Dodd-Frank Act stress tests (DFAST) results found. For the 16 firms that took part in the tests every year, the median projected minimum CET1 ratio rose from 7.7% in 2018 to 11.6% in 2026.