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Investing.com -- The Federal Reserve has extended the deadline for public comments on a proposal to improve stress-test models for large financial institutions.
The central bank announced Friday it would give banks an additional month to respond, with the new deadline set for February 21, 2026. The original deadline was January 22, 2026.
The extension aims to "allow interested parties more time to analyze the issues and prepare their comments," according to the Fed’s statement.
The proposal focuses on improving stress-test model and scenario transparency and accountability. However, comments on the proposed 2026 stress test scenarios are still due December 1, 2025, as originally scheduled.
Stress tests were implemented following the 2008 financial crisis to strengthen banks against potential economic downturns. The annual exams evaluate how lenders would perform during a hypothetical recession.
Banks have advocated for modifications to these tests, arguing they impose excessive burdens on financial institutions.
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