Stress Testing allows banks and credit unions to stress the portfolio, concentrations, and specific borrower relationships to identify risk. Institutions can create custom concentrations and apply multi-variable stress scenarios using key factors like interest rate, cash flow, and collateral value. The stress testing software also provides documentation, bridges loan data integrated from the core system and financial data entered in Credit Analysis, and links to FDIC call report data to show effects on capital and earnings.
Stress Testing
Understand Concentration and Portfolio Risk
- Stress CRE, C&I, and any loan in the portfolio in one system to simplify reporting
- Satisfy examiners with a top down or bottom up portfolio stress test
- Identify potential trouble spots in the portfolio for risk management
- Make more informed capital planning and lending strategy decisions based on stress results
- Create reports to effectively communicate risk levels to management, the board, and examiners
Impress examiners without the heavy lifting that comes with spreadsheet stress tests.
Find Out How
Sageworks Stress Testing is an efficient way to stress different levels of our portfolio. Since purchasing the solution, examiners have been very happy, making life easier for us.
Kristen Beggs, West Texas National Bank, Midland, TX
