Credit Stress Testing for Financial Institutions: Why the Data Behind Your Scenarios May Not Survive Regulatory Scrutiny
Laura Saville
Most large financial institutions have stress testing programs that appear complete. Scenario design, macro-linkage calibration, and capital projection frameworks all meet DFAST, CCAR, and IFRS 9 expectations on paper. The methodology is sound. The credit data feeding those scenarios is often not. Traditional rating agencies cover only about 10–15% of entities in a typical bank […] The post Credit Stress Testing for Financial Institutions: Why the Data Behind Your Scenarios May Not Survive Regul