Stress Testing and CECL: Connecting the Dots
Financial institutions have been conducting stress tests long before the regulatory mandates were put in place after the 2007-2008 financial crisis. Larger financial institutions have principally adopted the top-down approach (aka CCAR) which focuses on macro-economic changes and the resulting “stress” on large portfolios or individual assets. Smaller financial institutions ($25B or less) primarily perform the bottom-up “stress” that focuses on the loan transaction risk stemming from changes in micro-economic factors i.e. increasing interest rates or cash flows. As the goal of both approaches is a test on the capital adequacy of the respective financial institution, with CECL having the same goals, CEIS and Abrigo will examine the “bottom-up” stress test approach and the pros and cons for your CECL program
Join this webinar as we discuss:
- Data challenges
- The benefits of bottom-up stress testing
- Using stress testing data and outcomes in the CECL model development
Partnered with
Dean Giglio
Mr. Dean Giglio is a Managing Director with CEIS Review who is responsible for Loan Portfolio Stress Testing and related engagements for CEIS’ client base. Mr. Giglio is a Senior Level Credit Risk professional with over 25 years of credit risk management experience ranging with involvement in areas such as
