CURRENT AFFAIRS

Detailed explanation-1: -Notes: US Federal Reserve, the country’s central bank recently introduced Wall Street bank stress-test scenarios. The central bank will examine the ability of the 23 biggest US lenders to withstand crisis conditions without degrading their capital.

Detailed explanation-2: -The Federal Reserve of the United States is to create a hypothetical scenario of economic crisis. This is being done to check if the top-performing banks in the country shall survive the economic crisis. There are 23 big banks in the USA.

Detailed explanation-3: -A 2018 law lowered requirements for midsize banks Following the Great Financial Crisis, the Fed began imposing stress tests, but only for the largest banks. Then, came the Dodd-Frank legislation. It mandated exams for a far broader universe, all lenders holding $50 billion or more in assets, starting in 2013.

Detailed explanation-4: -Regulatory authorities and central banks globally require all banks of a certain size to undergo stress tests. In the United States, banks with assets greater than $50 billion are obligated to undergo stress tests conducted by the Federal Reserve.