Enables banks to stress test CRE loan portfolios to determine risk exposure, reveal strategies for creating a healthier loan portfolio
Banker’s Toolbox, a provider of commercial real estate loan (CRE) stress testing software and tools to comply with Bank Secrecy Act/Anti Money Laundering laws, has released the new edition of Crest. The tool enables banks to stress test CRE loan portfolios to determine risk exposure, reveal strategies for creating a healthier loan portfolio and better prepare for safety and soundness exams.
Reportedly, the new edition of Crest is streamlined to provide accurate stress test results with less data requirements, overcoming the ongoing data-gathering challenge faced by all banks. This program uses a model that allows for unified stress testing of all types of CRE loans.
According to the Banker’s Toolbox, the system enables banks to segment their CRE loan portfolio based on an unlimited variety of factors, including geography, property type or industry. Its universal stress factors empower bankers to run multi-variable scenarios that incorporate hypothetical changes to income, property valuation, and interest rate, without sacrificing flexibility and control for unique loan segments. The program’s realistic analysis makes it simple for banks to outline hazardous CRE loan concentration areas within the lending base and forecast complications with risky borrowers.
Daniel Cho, CEO of Banker’s Toolbox, said: “Examiners expect bankers to prove the strength of their CRE loan portfolio by stress testing based on current and potential future market conditions. Crest is the only CRE loan stress testing tool that gives banks automated framework that can be used to effectively eliminate burdensome data management requirements and produce a baseline stress test within a single workday.”
“When it comes to making decisions on CRE loan portfolios, more realistic, accurate information leads to stronger decisions for the bank. Crest provides this data and analysis in an affordable, easy-to-use interface that is infinitely more manageable and cost-effective than the comparable tasks of maintaining data integrity in a spreadsheet or repeatedly hiring outside consultants,” he added.