WASHINGTON, June 28 (Xinhua) -- The Federal Reserve on Wednesday allowed biggest U.S. banks to buy back shares and raise dividends with extra capital, judging their financial foundations sound enough to withstand a major economic crisis.

The Fed announced that it completed its review of the capital planning practices of the 34 largest U.S. banks in the annual Comprehensive Capital Analysis and Review (CCAR), and did not object any capital plans of all the 34 banks.

"I'm pleased that the CCAR process has motivated all of the largest banks to achieve healthy capital levels and most to substantially improve their capital planning processes," Fed Governor Jerome Powell said in a statement.

After the results were revealed, several banks quickly announced dividend boosts and share buyback plans, including Citigroup, Morgan Stanley, JPMorgan and American Express.

The review was the second part of the Fed's annual stress tests. In the first part completed last week, the Fed found that the 34 big banks are adequately fortified with capital buffers to withstand a severe U.S. and global recession and continue lending.

This is the seventh round of stress tests conducted by the central bank since 2009. The 34 banks represent more than 75 percent of the assets of all U.S. domestic banks. Enditem

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