Unit 12: Stress Testing

The Dodd-Frank Act requires that large banks undergo periodic stress testing of their loan portfolios under the supervision of the federal banking regulators, but should community banks consider doing likewise on a voluntary basis? In this installment of our Online Training Series, Mike Budinger of Crowe Horwath, will explore the advantages of stress testing for smaller institutions and provide an overview of how the process is accomplished, as well as its costs.

Topics Include:

• Regulatory Requirements
• Recommendation for Community Banks
• Stress Testing Methodologies
• Implementing A Stress Testing Program

A glossary of banking terms is included with each video unit.

About the Presenter:

Mike Budinger has over 17 years of experience providing credit and risk management consulting services to the financial services industry. As Crowe Horwath LLP’s Credit Risk Consulting national practice leader, Michael leads the firm’s effort to design and deliver credit risk services across commercial, card, mortgage and retail credit programs.

In the years since the Dodd-Frank Act Stress Test (DFAST) requirement was introduced for banks between $10B and $50B, Mike, and his team at Crowe have been active players in developing and implementing solutions to help mid-sized banks cope with the increasing regulatory requirements around capital planning and stress testing. Mike has led teams involved with a broad range of engagements for over 20 large and mid-sized institutions during the last few DFAST cycles, including projects in the areas of stress testing readiness assessment, model development, model validation, stress testing implementation, and internal audit.