All of the nation’s largest banks passed the latest stress test on Wednesday, the first time all aced the exam since the Federal Reserve began administering the exercise seven years ago.

The passing grades show that the American banking system has sufficiently rebuilt its capital levels since the crippling losses of the 2008 financial crisis while also learning how to effectively plan for another financial catastrophe.

The test also paves the way for the banks to pay the largest dividends in almost a decade, a boon for shareholders who have suffered years of sagging returns.

The banks have the option of returning up to 100 percent of their profits to shareholders, up from 65 percent last year.