Stress Testing & CECL Efficiencies
Focus on scenario stress testing, especially for institutions with significant commercial real estate (CRE) concentrations, has increased in the present environment. The OCC’s sunsetting of its tool for concentration stress testing complicates matters for community financial institutions. In this webinar, we discuss how credit models you may already be building for CECL can be used to perform capital stress tests, simulating the financial institution’s financial position for a given scenario, as well as concentration stress tests, evaluating risk from specific relationships within a given portfolio. For institutions more concerned with transitioning their stress testing capability, we discuss how to do so with maximum efficiency for CECL conversion.
Watch this webinar to learn:
- Interrelation of Allowance and stress testing models
- Stress testing needs for banks and credit unions with CRE
- Specific CECL applications of stress models