The Federal Reserve will put banks through a stress test where the unemployment rate jumps to 10%, the stock market dives by 60%, and oil prices reach $110 a barrel, according to the methodology released Thursday. The now-annual stress tests put the nation’s largest banks through such a “severely adverse” scenario. The Fed said the chief differences from the past year include a somewhat larger widening in corporate bond spreads and the increase in the price of oil. The Dodd-Frank Act requires these tests of 31 of the largest banks, with $50 billion or more in assets, before the Fed signs off on stock buybacks and dividends. Eight of the largest banks including Bank of America BAC, +1.22% CitiC, +1.40% and J.P. Morgan Chase JPM, +1.06% will also have to test for counterparty defaults, and six with large trading operations will have to test for a “global market shock scenario” that it hasn’t yet released. All the banks must submit these capital plans by January 2015. Last year, Citi, Zions Bancorp and three foreign banks failed the tests, and Bank of America was forced to suspend a planned increase in its dividend and a stock buyback after finding it had erroneously reported $4 billion more in capital than it actually had. Separately, the European Central Bank on Sunday is due to release stress tests on 130 banks in the euro area. By STEVE GOLDSTEIN D.C. BUREAU CHIEF