US banking system responding well to post-crisis reforms, says Fed

Banking system shows healthy rebound despite supervision uncovering weaknesses, the Fed reports

Financial research

US bank health is “close to pre-crisis levels”, according to the Federal Reserve’s first supervision and regulation report.

Leverage ratios and credit default swap spread data shows investors’ confidence in the banking system’s financial health has almost returned to levels seen before the financial crisis, according to the report.

The market leverage ratio moved close to 10% in July, while the credit default swap ratio was roughly 3%.

The Fed’s report also highlights a number of other

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