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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Deutsche Bank passes first stage of US stress test

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WASHINGTON: The United States’ 18 largest banks, including Germany’s Deutsche Bank, passed the first stage of an annual stress test to ensure the money lenders can sustain a major economic recession. The Federal Reserve said the 18 firms — including Bank of America, JPMorgan Chase & Co and Goldman Sachs — would sustain $410 billion in losses in the most severe global recession scenario, but high levels of high-quality capital would sustain them through the crisis. Since 2009, the 18 firms have increased their common equity capital by more than $680 billion, the Fed said.


“The results confirm that our financial system remains resilient,” Federal Reserve Vice Chairman Randal K Quarles said. “The nation’s largest banks are significantly stronger than before the crisis and would be well-positioned to support the economy even after a severe shock.” Deutsche Bank will face a more rigorous test with the release ofthe Fed’s second-stage stress test next week, which the bank has failed four times in the past five years, according to financial news broadcaster CNBC. — DPA


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