What happens if another financial crisis hits?

US banks just passed the Federal Reserve rigorous 2026 annual stress tests with flying colours, proving they could absorb over $708 billion in hypothetical loan losses and still maintain strong capital levels through a severe economic downturn. This is a big win for financial stability, confirming the banking system's resilience even under scenarios like a sharp rise in unemployment and massive drops in asset prices. But here's the kicker: while these tests assure us the banking system can handle a repeat of the 2008 crisis-style recession, regulators and experts are whispering about the threats the tests don't fully capture. We're talking about emerging risks like a booming, less-regulated private credit market, the spooky potential of coordinated cyberattacks, AI-driven vulnerabilities, and the growing specter of geopolitical fragmentation that the World Economic Forum estimates could cost trillions globally. The June 2026 Federal Reserve reports themselves acknowledge 'salient near-term risks' beyond traditional banking woes, suggesting a complex landscape of new challenges. So, what's next? Policymakers are keeping a hawkish eye on these evolving threats, particularly the interplay of persistent inflation and high interest rates which, while boosting some bank profits, could also hike default risks. With stress capital buffer requirements for big banks frozen until at least 2027, the focus is now on how regulators will adapt their oversight to these 'tomorrow's risks' rather than just 'yesterday's.' The question isn't just if banks can survive the last crisis, but if they're truly ready for the next, unknown one.