Cardinal Capital

With stress tests passed and dividends rising, US banks appear bulletproof… but what’s next for commercial lending?

The Fed’s 2025 stress test showed 22 major US banks can withstand a severe recession—leading to approval for dividend hikes and buybacks

Strong capital cushions support lending capacity and investor confidence—even as loan growth slows.

Fed says banks can withstand economic downturn, clears way for dividend hikes Twenty-two of the largest banks in the U.S. are well-positioned to weather a hypothetical severe economic downturn and continue lending, with firms maintaining robust capital levels even after suffering hundreds of billions of dollars in losses, the Federal Reserve reported on Friday.