Citi’s stress-test estimates out of sync with Fed’s
Bank lowballed capital hit in DFAST 2023 more than any other US systemic lender
Citi overshot the US Federal Reserve’s estimates of its stressed capital ratios in the latest round of stress tests – the worst performer among the eight US global systemically important banks (G-Sibs) – Risk Quantum analysis shows.
The bank missed the Fed’s projected hit to its Common Equity Tier 1 capital ratio by 170 basis points under the severely adverse scenario. It also overshot its projected stressed Tier 1 leverage ratio and supplementary leverage ratio (SLR) by 110bp and 80bp
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