By: CNBC.com and wires
The Federal Reserve released its “worst-case scenario” bank stress test criteria Monday and said it will release full results Thursday at 4:30 p.m. ET.
The Fed will look at how the nation’s 19 largest banks would survive a world with a 13 percent jobless rate, a 50-percent drop in stocks, a 21-percent decline in housing prices and a significant contraction of other major world economies.
The tests are designed to make sure banks have enough cash and cash-like securities to withstand catastrophic losses in a financial crisis.
The Fed wants banks to be strong enough to keep lending money to Americans and businesses.
The Fed can stop banks from paying stock dividends or buying back their own stock if they fail the test.
The Associated Press contributed to this report.