Do Bank Stress Tests Mean Anything At All?

Bank stress testing is conducted according to future adverse scenarios of the economy that may not truly represent the most likely potential outcomes. The people at FRG recognize this and always seek to develop mathematically robust solutions while still adhering to the guidelines of The Federal Reserve. It is with this mindset that FRG moves forward into the new and exciting field of risk management with the aim of one day finally being able to soundly capture risk.

Stress Testing Solutions: The Supply and Demand

More banks are seeking automated systems to stress test their institutions, rather than relying on manual processes that can be time consuming and not always cost effective. A new report by consultants with Aite Group suggests that smaller banks, those with revenues of less than $50 billion, may be more interested in simply complying with government regulations, and may not think they need a high level of stress testing automation.
FRG’s consultants know that automation offers more advantages than just speedy resolution. Our team provides a level of analytical insight that can help financial institutions plan their operational roadmap, armed with information to help them run their banks better. Contact FRG today to learn more about how we can help.
For more information on the Aite Group report, please click below.

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