Nothing to stress out about

The Federal Reserve released results from its latest bank stress tests. Surprising no one, every bank passed. 

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Nothing to stress out about
Welcome to the Know the Difference Minute for Thursday, June 29th.
The Federal Reserve released results from its latest bank stress tests. The Fed forces the largest 23 banks in the US to think through what might happen if there is a severe recession. The Fed wants to make sure those banks can keep lending and not need government assistance.
Surprising no one, every bank passed. Does this mean there is nothing to stress out about? While we do think the banking system is in good shape, the system is bigger than just the top 23 banks. There are more than 4,000 banks in America. The largest banks don’t make as many loans as the smaller banks do to small businesses. Smaller banks also make the lions share of loans for commercial real estate.
The vast majority are probably fine, but that doesn’t mean everyone is in the clear.
I’m Brian Jacobsen, Chief Economist at Annex Wealth Management. That is your Know the Difference Minute.