The Federal Reserve will give the 19 largest banks a preliminary result of its capital stress test, offering institutions that fail a chance to adjust their dividend and stock buyback policies.
The change comes after Citigroup and SunTrust Banks narrowly missed meeting the 5 percent tier one common equity to risk-weighted assets minimum capital ratio in the 2012 test at 4.9 percent and 4.8 percent respectively. Ally Financial had a stressed ratio of 2.5 percent in the last test.
While the change gives bank boards a second chance, the Fed will also publish the result of their initial capital proposal. Banks that pass the minimum stress ratio still could fail if the Fed detects their capital planning process is flawed.