Banks not subject to stress-test in 2021 will no longer be subject to the restrictions from end-June

  • banks with capital below that required by the 2021 stress tests will be subject to restrictions until Sept. 30

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Background to this is that the Fed placed restrictions on bank payouts last (northern) summer, citing the need to conserve capital during the coronavirus-induced downturn:

  • banned buybacks
  • capped dividends