Stress Testing 101 – Best Practices for the Community Banker

Presented by

Matthew Anderson, Trepp, LLC & Mike Benz, Trepp, LLC

About this talk

Concentrations of credit, particularly those related to commercial real estate loans, have been a common factor in bank distress during economic downturns. Since the financial crisis, regulators have been laser focused on ensuring that the nation’s largest financial institutions – those with $10+ billion in assets – have sound stress testing and capital planning programs in place to ensure financial stability. The focus is trickling down to the community bank level and examiners are now asking smaller institutions to have appropriate programs in place. For many community bankers, there is uncertainty as to what examiners expect, as well as a lack of resources and expertise to comply. There is also a misconception about the value of stress testing, with attitudes ranging from “it’s a necessary evil” to “it is an integral part of our strategic planning process.” EDR, in partnership with sister company Trepp, is pleased to offer this complimentary webinar “Stress Testing 101 – Best Practices for the Community Banker.” Attendees with get answers to some commonly asked questions, including: -What is a stress test? -What is capital adequacy stress testing? -What are the regulators’ expectations? -What are the larger banks doing? -What is the current state of stress testing? -What do stress testing results look like? -What macroeconomic variables go into projections?

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