The real benefit of stress testing and CCAR may lie in its potential for facilitating a more rigorous, robust and credible strategic planning process. Stress testing grew out of the crisis, there was a very tangible question that had to be asked, can the banks survive these very stressful scenarios? It has since evolved into banks building an entire machinery that allows them to project dynamically the main financials of the bank: the balance sheet and the income statement. It’s been very painful, and has left a sour taste in a lot of executive’s mouths, but one of the things that we’re finding is that now that this machinery is built, we are literally able to make lemonade out of these lemons.
Stress Testing Strategies
Bank’s Comprehensive Capital Assessment And Reviews Help Set Strategies By Stress Testing Alternatives
CCAR Video Library
Michael Duane and Til Schuermann, both New York-based partners in Oliver Wyman’s Financial Services practice, on the brighter side of the banks’ Comprehensive Capital Assessment and Review program.