A key banking regulator said that banks under his supervision have performed well, relative to the stress test, after the worst financial crisis since the Great Depression and that losses are significantly less than expected.
"The stress test, of course was a very severe test," John C. Dugan, comptroller of currency, told CNBC in advance of a speech in Charlotte, N.C. "What the results are showing is that losses aren't nearly as bad as the stress test would have shown.
Dugan added that generally "things are better" and "banks are stronger."
“The banks that have raised capital to deal with the worst-case scenario have even more capital to deal with in the better economic situation," he said.
Early-stage delinquencies on credit cards are showing the best improvement, he added, while mortgages and home-equity loans have yet to turn the corner.
”On the mortgage side and the home equity side, we’re not seeing the turn yet,” he added. “Foreclosures are still likely to be quite high as we get through the year.”