Bank of New York Mellon Corp., the world’s largest custody bank, said its board authorized the repurchase of as much as $1.16 billion of common stock following the Federal Reserve’s test of how the bank would fare in an economic decline.

“We are pleased to be able to initiate this new stock repurchase program,” Gerald L. Hassell, the bank’s chief executive officer said in a statement. “Our fee-based business model generates a significant level of excess capital.”

New York-based BNY Mellon also said it will continue its dividend of 13 cents per share over the next 12 months. The Fed didn’t object to the bank’s capital plan, BNY Mellon said in its statement.

BNY Mellon’s shares have gained 17 percent this year.