Stress Testing for Credit Unions: Now’s the Time

The financial crisis of 2008-2010 highlighted the importance of maintaining adequate capital levels in order to keep a healthy balance sheet during times of stress. Financial institutions of all sizes – including credit unions – need to understand and plan for allowance and capital levels that will let them survive periods of duress. Whether prompted by regulatory action or risk management concerns, stress testing on material risk exposures can help a credit union accomplish such objectives.