HSBC North America emerged from the US Federal Reserve’s latest Dodd-Frank Act stress test (DFAST) with a hypothetical leverage ratio of 3.8% – 20 basis points below the regulatory minimum.
Over the course of the nine-quarter stress scenario, the leverage ratio of HSBC’s US subsidiary was forecast to drop 250bp from a starting point of 6.3% – the third lowest in the 31-bank sample.
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