All 32 banks have passed the Federal Reserve's annual stress test, paving the way for dividends and buybacks.

Stress tests are designed to assess how Wall Street banks would perform in the event of hypothetical shocks to the financial system. Unlike previous years, the results of the 2026 tests will not impact capital requirements; the Federal Reserve is still revising the test mechanism to make it more favorable for banks. In a statement on Wednesday, the Federal Reserve said that given this decision, “there is no expectation that these institutions will delay public disclosure of their planned capital actions through the third quarter of 2027 until a specific point in time.” Expand