The Federal Reserve Board announced that it will publish results from its annual bank stress test on 27 June at 4:30 p.m. EDT and released its annual stress test methodology document detailing the models used. The stress test is used to assess whether banks have sufficient capital to absorb losses and continue lending under a hypothetical severe recession by estimating losses, net revenue and capital levels. This year’s exercise covers 22 large banks and applies a scenario featuring a severe global recession with heightened stress in commercial and residential real estate markets and in corporate debt markets.