By Daniel Hunter

All 31 US bank has passed the Federal Reserve's "stress tests", designed to test their ability to cope with another economic crisis.

The Fed said that all of the banks retain enough capital to continue lending if another financial crisis were to hit.

It was the first time since the tests were introduced in 2009 that all 31 banks have passed the first test. However, some of the country's biggest and most well-known banks were among the worst performers. Goldman Sachs, Morgan Stanley and JP Morgan Chase were in the bottom five.

The next round of stress tests, banks will be tested on their ability to continue lending and pay shareholder dividends.

The tests were introduced to restore confidence in the US financial system if another financial crisis were to occur after the US government was forced to inject $700bn (£459bn) into the banks to keep them afloat.