Stress Testing: What Banks Need to Know to Meet Today’s Requirements
Dodd-Frank Act stress-testing (DFAST) requirements can pose significant challenges to banks of all sizes. DFAST is currently mandated by the federal bank examiners for banks with more than $10 billion in assets, but regulators say banks of all sizes should be able to analyze how adverse events could affect their financial conditions.
Most observers expect that banks with less than $10 billion in assets eventually will be subjected to regular stress testing as well. In one recent webinar attended by roughly 300 bankers, auditors, regulators, and consultants, more than 85 percent of the participants said they believe stress testing will become a regular practice for all banks.
Crowe Horwath LLP offers stress testing consulting services that complement a powerful proprietary tool that helps banks analyze their current state and meet the expanded Office of the Comptroller of the Currency (OCC) Dodd-Frank Act stress-testing (DFAST) requirements.
DFAST: Achieving Long-Term Value