Our Calling All Bank Directors podcast episode on stress testing comes out July 13 and will feature Steve Lane, a co-founder of SRA Risk Associates, who has conducted numerous stress tests for community and mid-sized banks.

The Fed requires stress testing by the 34 largest banks, but the banking agencies don’t have an explicit requirement for smaller banks.

Nevertheless, if your bank does not conduct a realistic stress test that extends beyond the six-month forbearance period and does not apply the results to your capital planning and credit administration, watch out!

Are your capital levels sufficient to withstand any plausible downturn in the economy and your credit quality?

Find out now when there is still time to raise capital and take other measures to protect the survival of your bank.

Your board must be engaged and ask the tough questions of management!