The Federal Reserve Board has announced that the results of its annual bank stress test will be released on Friday, June 27, at 4:30 p.m. EDT. This announcement was made on Friday, along with the publication of the Board's annual stress test methodology document, which details the models used in this evaluation.

The stress test is a tool to assess whether banks have sufficient capital to withstand losses and continue lending to households and businesses during a severe recession. It measures banks' resilience by estimating potential losses, net revenue, and capital levels under a hypothetical recession scenario.

This year, 22 large banks were evaluated under the Board's stress test. The scenario presented includes a severe global recession with increased stress in commercial and residential real estate markets as well as corporate debt markets.

Further information is available for those interested in learning more about the process and findings.