The Federal Reserve Board's annual bank stress test revealed that large banks are well-equipped to withstand a severe recession, despite facing greater projected losses than in previous years. Despite a challenging scenario that includes a decline in commercial real estate prices and high unemployment rates, all 31 banks tested remained above their minimum capital requirements. Factors contributing to the increased losses include higher credit card delinquencies, riskier corporate loan portfolios, and decreased fee income. Although some banks, including Citizens Financial Group Inc and Goldman Sachs, saw a decline in after-market trading following the report, the overall resilience of the banking sector is evident. Lessons learned from past crises have led to improvements in bank balance sheets and risk management practices, ensuring that banks are better prepared to weather future economic downturns.