White Paper:
A Proven Approach to Stress Testing Consumer Loan Portfolios

The Interthinx Predictive Analytics group has released a white paper detailing the measurements, data sets and procedures needed to develop more sophisticated economic models that assist lenders in meeting regulatory stress testing requirements from governing bodies like the Federal Reserve and the Financial Services Authority.

"A Proven Approach to Stress Testing Consumer Loan Portfolios" identifies ways that retail lenders can use stress testing to more accurately predict how different economic scenarios would impact both their portfolios and the overall health of their capital reserves.

Key Learning Points include:
• What makes an effective Stress Test
• What are the key challenges in Retail Portfolio Stress Testing
• Factors that drive portfolio performance
• Best Practices in stress testing retail loan portfolios with economic data