WASHINGTON (MarketWatch) — The Federal Reserve announced Friday it has completed stress tests on 19 big banks and that some firms examined are expected to be permitted to announce dividend hikes and share repurchases. Specifically, the central bank released details about their methodology for a new set of stress tests it conducted on the 19 big banks, including a requirement that the institutions test their revenue and capital against three different economic outcomes including a Fed-generated recession scenario in which the unemployment rate rises to 11%. The Fed said its actions on capital distribution come after “significant improvements in both economic conditions and the capital positions of financial institutions.” It added that the action will support lending to consumers and business.

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