The Federal Reserve is set to conduct stress tests for big banks in 2025, focusing on potential risks in the real estate market and impacts from the non-bank sector. These tests will assess how large banks manage severe economic downturns, including the failure of significant counterparties.
In the projected scenarios, unemployment in the U.S. Could reach 10%, alongside a 33% fall in residential property prices and a 30% drop in commercial real estate values. This aims to provide a clearer view into the resilience of the banking sector.
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