For those who have been worried about the banking system, the Federal Reserve brings news of its "annual bank stress test, which demonstrates that large banks are well positioned to weather a severe recession and continue to lend to households and businesses even during a severe recession." Even if commercial real estate experiences a massive decline in value.

The Fed's annual bank stress tests how lenders would do against a 40% decline in commercial real estate values, among other scenarios. The 23 banks examined hold approximately 20% of office and downtown retail CRE loans, and their average projected CRE loan loss rate was 8.8% of average loan balances, compared with 9.8% last year. Goldman Sachs Group had the highest CRE loan loss rate of 16% of average loan balances, followed by Morgan Stanley at 13.7% and Citizens at 12.4%.

"Today's results confirm that the banking system remains strong and resilient," Vice Chair for Supervision Michael S. Barr said in prepared remarks. "At the same time, this stress test is only one way to measure that strength. We should remain humble about how risks can arise and continue our work to ensure that banks are resilient to a range of economic scenarios, market shocks, and other stresses."