Federal Reserve: 23 biggest banks could weather severe recession

COLUMBIA, S.C. (CNN)—The largest U.S. banks are strong enough to withstand a severe recession.

On Wednesday the Federal Reserve reported on its annual “stress test” for 23 major banks.

The test involves looking at banks’ ability to lend in the face of hypothetical scenarios like a real estate crash, high unemployment and trading turmoil.

Fed officials say all banks required to take the Fed’s exam passed the test and fared better this year compared to last year.

Officials also say the results confirm that the banking system is strong and resilient.