Items include
stress testing
Whitepapers
Jan 23, 2024
A guide to help you manage credit risk using four strategies. Learn about the benefits and tips of credit stress testing your loan portfolio seamlessly.
Dec 8, 2023
With recent market downturns, interest rate fluctuations, and even liquidity issues, stress testing can allow you to identify potential risk in your portfolio and the impact on earnings, liquidity, and capital. Where do you start? Checkout this paper that offers 6 stress testing tips to see the possible risks in your portfolio and the impact on earnings, liquidity and capital.
Aug 21, 2024
Risk within CRE lending portfolios may be higher than the banking industry realizes. We discuss rising sources of risk and how stress testing can help CFIs proactively identify trouble spots.
Mar 28, 2024
The Federal Reserve has released its 2024 stress testing scenarios: its primary tool to assess the largest banks’ fiscal health resiliency by estimating losses, net revenue, and capital levels under hypothetical recession scenarios. This year’s severely adverse scenario includes unemployment reaching 10%, a widening spread on corporate bonds, and dramatic declines in asset prices. We summarize the scenarios and determine how they can help CFIs devise their own tests to improve their capital planning and risk management.
Aug 18, 2022
The next great boom in refinancing will likely be in CDs and other deposits, which are vulnerable to customers who decide to pay penalties and reinvest at higher interest rates. A rising-rate environment is also a potentially fruitful hunting ground for fintechs and neobanks, which already offer higher rates than traditional institutions. We discuss three strategies to help CFIs hold their best customers and stress test for CD and deposit losses.
Oct 4, 2021
The personal consumption expenditures price index rose more than 3.6% YoY, according to the US Commerce Department. With inflation here for now, community financial institutions should update their loan and liquidity stress tests to ensure they are ready for anything. Here are three steps to prepare your institution for the coming effects.
Aug 17, 2022
The Federal Reserve just concluded its annual capital adequacy annual stress test with 33 participating banks. While regulators don’t require CFIs to run stress tests to assess their capital adequacy, the federal banking supervisory agencies indicate that they should have the capacity to analyze the potential impact of adverse outcomes, and particularly encourage this for CFIs with CRE portfolios. We provide four steps to help form the foundation of an effective capital planning process.
Jan 30, 2023
Economic forecasts for 2023 include a soft landing, stagflation, and recession. No matter which proves to be accurate, CFIs should prepare for the worst by assessing and taking steps to effectively manage risk.
Mar 10, 2021
Trying to figure out how today’s balance sheet will respond to future events is more difficult than ever before. But, as the pandemic unevenly ends, this becomes critical. Test for volatility to anticipate structural weaknesses by examining the business model, back-testing for validity, and challenging assumptions.
Sep 17, 2020
Liquidity risk management is always important for bankers, but especially during times like these. We highlight three key considerations.
Jun 30, 2020
Many financial institutions are evaluating their loan portfolios for COVID-19 effects on capital. We explain how to use economic data effectively when doing this.
May 20, 2020
With the current environment, you will need to view credit risk in a much different way than ever before. We give you three important steps to take.
Nov 18, 2019
Stress tests can help you identify your institution's vulnerabilities. But, not all stress tests are created equal.
Sep 16, 2022
CFIs can lower their exposure while boosting their profitability by pricing commercial loans commensurate with the borrower’s risk. We delve into the details of a risk-based pricing model.
Dec 6, 2022
This year has seen record inflation, ongoing interest rate hikes, and economic recovery, followed by anxiety over a possible recession. In this first installment of our three-part review of 2022, we look at this turbulent market and how it has impacted lending.
May 21, 2020
While there are definitely routine things to look for as you stress test, there will be some new areas to address as well. Get started with our six stress testing tips for COVID-19.
Apr 3, 2023
Many CFIs approach stress testing from one perspective. Stress testing from multiple standpoints, however, can help organizations assess new drivers and changes in the macroeconomic environment. But more frequent stress tests can also bring challenges. We discuss how to manage the challenges and reap the benefits.
Apr 28, 2021
Bankers are waiting with bated breath to see how commercial real estate portfolios will land now that some economic recovery seems to be underway. We detail some of the continuing challenges to CRE — retail, remote work, and inflation — along with our thoughts on the effects of these challenges to help with your plans for the future.
Oct 20, 2022
Between inflation and higher interest rates, businesses need to charge more for goods and services, while also worrying that they’ll lose price-sensitive customers. As a result, CFIs are likely to see increased credit stress soon. We discuss six strategies CFIs can use to manage credit risk challenges in a volatile environment.
Aug 17, 2020
Combining liquidity and credit stress testing provides a more complete picture around your institution's resiliency.
Jul 16, 2020
While the Fed concluded that the big banks were currently stable, financial institutions of all sizes should be stress testing to anticipate the impact of COVID-19 on capital.
