The Federal Reserve Board's annual bank stress test Wednesday reveals that while large banks face greater projected losses than last year in a downturn scenario, they remain well-positioned to endure a severe recession and maintain their capital requirements above minimum thresholds.

"This year's stress test shows that large banks have sufficient capital to withstand a highly stressful scenario and meet their minimum capital ratios," said the Fed's vice chair for supervisionMichael S. Barr.

Although this year's stress test adverse scenario is as severe as last year's, it resulted in greater losses due to...