Thursday, December 1, 2022

Bank CEOs: Financial institutions ready for economic headwinds

The CEOs of the nation’s seven largest retail banks testified before the House Financial Services Committee last week in a hearing that touched on a wide range of topics, although high inflation and the Federal Reserve’s decision to once again raise the federal funds rate loomed large.

During the six-and-a-half hour hearing, the executives fielded questions ranging from mortgage practices to foreign affairs to their institutions’ sustainability commitments. They were also pressed about the current economic climate and how well their banks were positioned to handle a potential downturn, with CEOs assuring committee members they were prepared for that possibility.

“You don’t have to take our word for it,” Bank of America CEO Brian Moynihan said. “Look at the stress test for 10 years in a row. They’ve been stress testing under scenarios that have the worst indicator of every element that’s occurred.”