BANK REGULATORS are under considerable pressure to get "ahead of the game" since the 2008 financial shock caught so many financial institutions unprepared. The Federal Reserve has mandated stress tests for banks of more than $10 billion in assets - how long before they reduce that figure to $5, $1 billion or $100 million? In truth, stress testing is a necessary strategic tool for managing any bank, and should be undertaken by every bank.
For regulators, sorting the "wheat from the chaff" - the banks that are healthy versus the ones that require in-depth investigation and close monitoring - has been a phenomenally labor-intensive task. Until now. The Invictus Sustainability Reports are created by running publicly available data for 6000+ FDIC-insured banks through our ICAM™ and LoanLayering™ stress-test models. Regulators are rapidly accepting our Invictus Sustainability reports as the benchmark in the industry.
As a regulator or bank supervisor, use these reports to:
- prioritize the use of limited field examination resources,
- focus attention on specific bank issues during examinations,
- conduct in-house reviews of banks between field examinations,
- understand better the likely loan growth in your region.