Boston, January 09, 2014 – Regulatory attempts to prevent spectacular financial failures and economic instability have followed virtually every speculative bubble. Today, regulators and banks of a variety of sizes have taken up the mantle of stress testing—the pro forma analysis of financial institutions' capital adequacy—in an effort to prevent a recurrence of financial institution bailouts. But stress tests provide more than compliance. Among banks and vendors, opportunity lies in analytics and automation: better risk management, lower regulatory capital requirements, and improved productivity are just a few of the benefits of embracing and automating stress tests.
Based on a Q2 2013 Aite Group survey of 18 compliance professionals, this report expands Aite Group's ongoing coverage of this important topic by exploring the state of banks' stress-test capabilities: goals other than compliance, the degree to which automation supports stress tests, and banks' levels of concern about regulatory outcomes.
This 15-page Impact Note contains six figures and two tables. Clients of Aite Group's Wholesale Banking and Retail Banking services can download this report.