Credit Stress Testing for Optimal Risk Management
Overcome Credit Risk Challenges with Stress Testing FIT™
How has the current market impacted your capital?
PCBB’s Stress Testing FIT solution and expert advisors can quickly stress test your loan portfolio under various economic conditions. The comprehensive results can help your team understand key vulnerabilities and determine the potential impact on your earnings and capital.
Key Benefits:
- Top-down and Bottom-up approaches
- Quickly stress test your loan portfolio
- Evaluate multiple scenarios and stress factors
- Easily meet regulatory compliance
- Receive pre-exam assistance
Two Approaches to Credit Stress Testing Your Loan Portfolio
Deluxe
| Approach | |
|---|---|
| Top-down — Portfolio Level approach | |
| Up to 4 scenarios based upon different forecasts | |
| User configurable forecast (GDP & Unemployment) | |
| Loan Data | |
| Industry segmentation | |
| National and regional industry results | |
| Reporting and Analysis | |
| Multiple regression-based analysis | |
| Transparent inputs and calculations | |
| Robust reporting | |
| Comprehensive graphics | |
Pro
| Approach | |
|---|---|
| Top-down & Bottom-up approach | |
| Multiple scenarios (pre-stress, baseline and adverse) | |
| Stress factors: DCR/DTI, LTV, NOI, Debt Service, Cap rates | |
| Loan Data | |
| Industry segmentation + custom groups | |
| National and regional industry results | |
| Your institution’s note level data | |
| Reporting and Analysis | |
| View concentrations: branch, officer, MSA, NAICS, etc. | |
| Transparent inputs and calculations | |
| Robust reporting | |
| Comprehensive graphics | |
| Advisory assistance included | |
The process of stress testing portfolios can aid in strategic decision making, credit policy development, strengthen the quality of concentration risk management, support reserve methodology, and determine regulatory capital at risk.
What Our Credit Stress Testing Tool Can Do For You
Stress Testing FIT calculates your losses under different economic environments with multiple configuration options and in the context of current reserves and forward earnings. Our experienced FIT Advisors will provide you with insights and guidance along the way.
- Flexibly review your losses by asset class, from either a top-down or bottom-up perspective
- Back-testing and projections included at no additional cost
- Pro-forma impact on earnings and capital adequacy
