An article I wrote was recently featured as a guest blog on the ABA Banking Journal's UNconventional Wisdom blog on July 17, 2012. UNconventional Wisdom is a periodic guest blog where authors hold up the so-called conventional wisdom to a fresh perspective, or apply common principles in new ways.
Would You Bring a Knife to a Gun Fight?
Of course not. So why would you bring an inferior stress test--or no stress at all--to a bank examination? With the imminent release of a portfolio stress testing tool by the Comptroller's Office, your field examiners will be able to enter some information on some loans in your portolio and roll up the results to calculate the impact of the stress test on your institution's overall capital and earnings. Does this frighten you? It most definitely should.
Click here to read the full article.