US banks set to pass Fed stress tests and boost dividends, say analysts

The biggest US lenders are expected to clear the Federal Reserve’s annual health check this year, showing they have ample capital that can be used to boost dividends, analysts said.

The results of the central bank’s so-called “stress tests” on Friday will determine how much cash lenders would need to hold to withstand a severe economic downturn. A less strenuous methodology this year means banks will probably perform better and