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Stress Test

At Investors Bank we leverage CEIS Review's expertise to assist us in identifying and evaluating credit risks before they can potentially become problematic. As a rapidly growing institution, CEIS Review has been more than able to meet our growing demands with a suite of their credit risk consulting services. Whether it be their Loan Review programs, Stress Testing or other consulting activities they are always there as a reliable and steadfast partner. In addition, the CEIS teams are comprised of professionals with extensive experience in banking that add value to the process with their input and commentary. The onsite team definitely adds value to the process.

Kevin Cummings,
President and CEO

“Bottom Up” Loan Level Approach

Through experience CEIS has concluded that most community banks’ core IT loan systems do not contain the financial data required to perform a valuable bottom up commercial real estate (CRE) portfolio stress testing exercise.

CEIS has developed a strategic approach to “bottom up” stress testing by gathering and using the pertinent transactional data during a Loan Review engagement for the CRE stress test.

Additionally, reviewing regulatory examinations and discussions with clients has consistently shown that regulatory expectations around CRE-related stress testing are focused on the development of a stress-testing process and framework on a granular loan level.

As a result of coinciding a commercial real estate portfolio stress testing program with a loan review engagement, a client is able to keep the process economical and manageable with little disruption to normal internal processes.

Conducting both the Bottom Up and Top Down stress testing approach is beneficial to stress testing results. By pairing the results from the CRE stress testing with the Top Down approach, we ensure more consistent results for the total portfolio concentration.

Contact us today to learn more about our “Bottom Up” commercial real estate portfolio stress testing program.