We make stress testing repeatable, understandable, and easier to update, so your team is not building and maintaining a spreadsheet model every quarter.
Liquidity stress testing
Assess your ability to withstand adverse financial conditions and meet short-term obligations. With recent major bank liquidity failures, regulators have heightened expectations for contingency planning. Our model helps you swiftly identify vulnerabilities and plan for potential liquidity shortfalls.
Portfolio credit stress testing
Gain insights into your capital adequacy by assessing potential losses in loan portfolios under stress scenarios. Ensure sufficient capital buffers to absorb potential losses and maintain regulatory compliance. Based on 40 years of historical data for banks in your area.
Credit risk stratification
Use our credit risk stratification matrix to proactively manage credit risks and enhance financial stability. Assess the potential impact of adverse scenarios on your loan portfolio and identify vulnerabilities across different risk categories within your matrix.
Questions we get about Stress Testing
- Why do we need both credit and liquidity stress testing?
- Because pressure can show up in more than one place. Credit stress testing evaluates how loan losses affect earnings and capital. Liquidity stress testing evaluates deposit runoff, loan growth, funding needs, contingency sources, and how long liquidity holds under pressure.
- Can we test our actual portfolio instead of a generic scenario?
- Yes. Stress Testing uses your loan and Call Report data, with the ability to assess portfolio characteristics, loss-rate assumptions, concentrations, debt-service coverage, loan-to-value relationships, and liquidity sources.
- Can we adjust the severity of the stress scenario?
- Yes. Banks can run and compare different stress levels and assumptions, including credit losses, interest-rate changes, property-value declines, NOI changes, deposit runoff, loan growth, and funding sources.
- Can we show the results to the board and examiners?
- Yes. The output shows the scenario, the assumptions, projected losses, earnings impact, liquidity impact, and capital position in a form that can be discussed with directors and regulators.