All winners, no losers. That’s the story coming out of CFRA’s in-depth review of the 2025 Federal Reserve Bank Stress Tests. With all 22 participating banks clearing the hurdles and capital requirements falling across the board, this year’s test marks a significant shift in regulatory tone—and a meaningful inflection point for investors and financial institutions alike.
In this report, CFRA Analyst Alexander Yokum, CFA, breaks down how a less severe macroeconomic scenario and proposed changes to the Fed’s stress testing framework led to a dramatic improvement in Common Equity Tier 1 (CET1) ratios, opening the door for increased capital returns. From M&T Bank’s bold voluntary participation to Wells Fargo’s post-cap removal momentum, this research identifies the super regional banks best positioned to accelerate dividends, share buybacks, and long-term growth.
But not all is without caution. The report also dives into potential risks including transparency concerns and the possibility of under preparedness in the face of future economic shocks.
Inside this report:
- Which banks gained the most from reduced capital requirements
- Exclusive insights on M&T Bank, PNC, Truist, USB, and Wells Fargo
- Breakdown of the Fed’s relaxed stress test scenarios
- Analysis of proposed regulatory changes and capital planning flexibility
- Forward-looking outlook on dividends and share buybacks
- Risks tied to stress test transparency and market overconfidence
Download the full thematic report to see which banks are primed for outperformance, how proposed regulatory shifts could reshape the sector, and what investors should watch as capital returns ramp up in 2025 and beyond.