The U.S. Federal Reserve said on Wednesday that 32 of the nation’s largest banks are well-positioned to weather a severe economic downturn and continue lending, as firms could absorb over $700 billion in hypothetical losses and remain above minimum capital requirements.

The Fed's annual exercise comes at a pivotal moment for bank regulation because, unlike previous years, the results will not affect capital requirements.

The Federal Reserve's 2026 stress test confirms all 32 major US banks can withstand a severe recession with capital above requirements, with buffers frozen