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What are the regulatory requirements for bank stress tests?

May 24, 2013
Read Time: 0 min

This video is a segment taken from a recent webinar, hosted by Michael Lubansky of Sageworks. For the full recording, visit Stress Testing the Loan Portfolio.

Before the recent wave of guidance, there had been a lot of frustration with stress testing because there had been little direction as far as what “stress testing” actually meant and what a bank should do.

The 2011 Concentrations of Credit Guidance basically recommended that banks of all sizes will benefit by supplementing stress testing of individual loans with larger portfolio and firm wide stress testing. It prescribed both top down and bottom up stress testing analyses.

The 2012 Interagency Expectations for Stress Testing reiterated that a stress test or sensitivity analysis would benefit banks of all sizes and show the potential impact that adverse scenarios could have on the bank’s overall finances. Read more on recent stress testing regulations.

To learn more, download this whitepaper, Stress Testing: Who, What, When and Why. Or, watch a demo to see how financial institutions use Sageworks Stress Testing to systematize their data collection and analysis.

About Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

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