Federal Reserve Vice Chair for Supervision Michael Barr recently testified before the House Financial Services Committee on the response to bank failures of Silicon Valley Bank and Signature Bank. The Federal Reserve announced that the largest U.S. banks could withstand a severe recession scenario while continuing to lend to consumers and corporations. All 31 banks in the regulatory exercise maintained more than the required minimum capital levels despite hypothetical losses totaling nearly $685 billion. This year's stress test revealed that banks have built up sufficient capital, but there are areas of concern like holding more consumer credit card loans and facing squeezed lending margins. While no bank failed the test, aggregate capital levels decreased by 2.8 percentage points due to changing risks in the financial system. The Fed also conducted an exploratory analysis on funding stress and trading meltdowns, showing that the banks could handle potential challenges. Share repurchase plans will be announced soon.