How well stress tests measure a bank’s ability to survive adverse conditions depends on the statistical modeling approach used. Banks can access data on loan characteristics to precisely estimate ...

The Moody’s model builds on earlier research that developed a method for parsing out bank-specific data based on both aggregate industrywide data and information about an individual bank’s market ...

The Nation Newspaper How technology transformed modeling and forecasting for stress testing. Friday, June 13, 2025 Advertise ... High-quality data is the foundation of effective modeling and ...

Moody’s Analytics offers a best-in-class blueprint for the still-evolving category of enterprise-wide stress-testing. Its solution is comprehensive in scope and rich in functionality. For credit ...

At its core, credit stress testing guards against unexpected loss. Banks, by the very nature of their business, expect some loss, usually covered by the loan-loss reserve account. Unexpected loss, by ...

Stress-testing models are notoriously difficult to backtest as they are designed to predict events that have a low probability of occurring and are therefore missing from most historical training data ...

I am a proponent of stress testing of any planning model, ... Bob has a fairly generic portfolio—and we have analyzed this using QPP with all default settings and data only through 12/31/2007 to ...