Stress Test
Using Stress Test to Leverage your Balance Sheet
January 22, 2018 -By: Tags: , , , , , , , , -

In our current environment of heightened regulatory scrutiny on construction and development lending, one ought to be thinking about  key elements of your construction portfolio and how it supports growth and aligns with your business objectives. If your construction loan portfolio is approaching or has grown over 100% of capital, then it is likely you will be subject to increased scrutiny from your regulators. An expert third-party validation can help you execute your strategy and achieve your goals.

At Cobblestone Management, we have developed a unique, proven construction stress test model which has withstood the scrutiny of regulators. We have delivered this service to clients across the country and can now deliver this remotely. Proper stress testing, in conjunction with other strong risk management practices, ultimately facilitates a “permission slip for growth” from regulators. A satisfied regulator allows your bank to leverage your balance sheet, which leads to greater profitability.

Our expertise and excellent reputation with the regulators has enabled us to help our clients keep their growth plans on target with our stress testing model.

I am excited to share my experience and best practice lessons from our stress test models and how it has benefited our clients, with a larger audience. Two educational and information packed webinars are scheduled for February 6th and 8th and I hope you can join us for one of these two sessions. You can sign up for the webinar here.

Please forward this link to a colleague of yours!

Kevin Henkin is CEO of Cobblestone Management, LLC. a credit risk management industry leader for over 30 years. In addition to loan review consulting, we also provide a wide variety of services, including stress testing. Our client base stretches from Boston to Seattle.