The Federal Reserve's most recent stress test shows 29 out of 30 U.S. banks met their stress test capital requirements. Only one smaller bank, Zions Bancorporation, failed to pass the annual test. Shares of that Salt Lake City-based bank's stock fell more than 1 percent in extended trading.
The results showed continued improvement in banks' financial positions since the 2008 crisis, the Fed said. That built on positive results in last year's tests.
The Fed will announce next week whether it will approve plans by some of the banks to increase dividends or buy their own stock.
Following the announcement, Discover Financial, one of the 30 banks tested, said it will increase its quarterly dividend by 4 cents to 24 cents per share.
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