Biggest banks plan to raise dividends After passing new stress tests, some major U.S. banks plan to boost dividend payments, Reuters reported.

JPMorgan Chase & Co and Wells Fargo & Co. are among those planning to go ahead with increases, an indication that the Federal Reserve is confident that some of the country’s largest lending institutions could able to withstand adverse economic conditions.

After muddling through a tough recession, the banking system has been profitable for a year, Reuters said.

“This is one of the final steps in terms of showing the redemption of the banks from 2008," said Matt McCormick, a portfolio manager at Cincinnati-based Bahl & Gaynor Investment Counsel, which owns bank stocks.

The Federal Reserve, which asked banks to submit self-assessments in this second round of stress tests, began notifying the 19 largest banks whether they had passed.

The Fed left it to individual banks to disclose their results.