Stress Testing Policy
The purpose of this Stress Testing Policy Template is to address the approach of a bank, credit union, or other type of financial institution to stress testing that is designed to fit its unique loan portfolio strategy, size, loan types, composition, operations, and management. This process can range from a single spreadsheet analysis to a more sophisticated model, depending on portfolio risk and the complexity of the organization, thereby enabling management to ensure that potential adverse outcomes are appropriately considered.
Table of Contents
- Purpose and Contents – Topic 1
- Policy Statement – Topic 2
- Stress Testing Program Overview – Topic 3
- Responsibility – Topic 4
- Key Principles – Topic 5
- Approaches and Applications – Topic 6
- Assessing the Adequacy of Capital and Liquidity – Topic 7
- Stress Testing Credit Risk – Topic 8
- Annual Stress Test – Topic 9
- Audit Policy – Topic 10
- Retention of Documentation – Topic 11
Recent updates to this product:
OCC News Release 2019-114 – OCC Issues Final Rule Amending Stress Testing Rule for National Banks and Federal Savings Associations
FDIC Final Rule
Current Expected Credit Losses (CECL) Accounting Standard
Joint Release – Agencies Allow Three-Year Regulatory Capital Phase In for New Current Expected Credit Losses (CECL) Accounting Standard
Joint Release – Agencies Issue Statement Regarding the Impact of the Economic Growth, Regulatory Relief, and Consumer Protection Act
FDIC Final Rule – Rescind Certain Capital Regulations
Final Rule – Testing and Conforming Changes to Stress Testing – OCC Bulletin 2018-4
This Stress Testing Policy Template (approximately 30 pages) is available to purchase from BankPolicies.com in Microsoft® Word format.
NOTE: The complete contents of this product are also included in the Corporate Governance Policy Template.
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