Boston, June 3, 2013 - Following the 2008 start of the financial crisis, consumer questions about how "too-big-to-fail" institutions became so risky resulted in mandatory stress tests that now determine whether banks' capital levels are adequate to endure the next financial catastrophe. Today, U.S. banks must undergo stress tests by performing granular, enterprise-wide pro forma analyses of their institutions under various sets of economic assumptions, some of which are quite adverse and all of which require significant resources. In doing so, they are more than complying--they are acquiring data and assets that will prove a boon to their business.
Based on Aite Group interviews with banks that have participated in stress-testing activities for their institutions and with vendors that offer stress-testing capabilities to banks, this Impact Report by senior analyst David O'Connell guides banks through the world of capital adequacy testing and discusses capability needs ripe for vendor solutions.
This 32-page Impact Report contains eight figures and 10 tables. Clients of Aite Group's Wholesale Banking service can download the report.