WASHINGTON, June 24 Reuters Big U.S. lenders are expected to show they have ample capital to weather any renewed turmoil during this week39;s Federal Reserve health checks, but will be conservative on investor payouts amid economic and regulatory uncertainties, analysts said.

The central bank on Wednesday will release the results of its annual bank stress tests which assess how much cash lenders would need to withstand a severe economic downturn and how much they can return to investors via dividends and share buybacks.

The results come a year after three large banks failed and as higher Fed interest rates continue to squeeze regional lenders39; margins and their commercial real estate CRE portfolios. Weakening consumer demand has also dampened sentiment on the trajectory of the economy.

With more midsized banks in the mix this year, the tests should provide fresh insight into the health of those lenders.

Introduced following the 20072009 financial crisis, the annual exercise is integral to banks39; capital planning.

The results will also likely fuel Wall Street banks39; campaign to ease draft capital hikes proposed by the Fed, which they say are unnecessary because big banks are already flush with cash.

Bank groups will be scouring Wednesday39;s results for evidence that boosts their case, while being cautious on payouts since big dividends and buybacks could hurt banks39; argument that extra capital demands would impede their capacity to lend.

The stress test…