Fed extends stress testing period to give banks more time to give feedback
2025-11-21 22:55:25
The Federal Reserve has agreed to give large banks more time to submit comments on parts of a proposal to improve the stress testing model of the Large Financial Institutions Group. The deadline for public comments on proposals to improve the stress testing model and the transparency and accountability of scenarios will be extended by one month to February 21, the Fed said in a statement on Friday. The deadline for comments on the proposed 2026 stress testing scenario remains December 1, the Fed said. Annual stress testing was introduced after the 2008 financial crisis to strengthen the banking sector's ability to respond to future economic shocks and is used to assess banks' performance under stress in a hypothetical recession scenario. Banks have long pushed for changes to the tests, claiming they are overburdened.
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