The Federal Reserve announced on Tuesday that it will publish the outcomes of its yearly stress assessments for major financial institutions on June 24th.

This annual exercise is conducted by the central bank to evaluate how large banks would perform under hypothetical conditions of economic downturn and market strain.

According to a statement from the Fed, this year's test scenario subjects 32 major banks to a severe global recession, featuring heightened pressures in commercial and residential real estate as well as corporate bond markets.

The findings are scheduled for release at 4 p.m. Eastern Time, but they will not impact the capital requirements for the large banks, the Fed clarified.

The performance of banks in these annual tests determines the size of the mandatory "stress capital buffer" they must maintain to absorb potential losses.

In a move to enhance transparency, the Federal Reserve advanced reforms to the annual stress tests last October, planning to disclose previously confidential models and the methodology for constructing the hypothetical recession scenarios used in the assessments.

In the 2025 test cycle, the Fed determined that the 22 largest U.S. banks would all be well-positioned to weather a hypothetical severe recession and continue lending, maintaining robust capital levels even while incurring hundreds of billions of dollars in losses.