26 May Podcast: Why Banks Should Know Their Margin of Safety During the COVID-19 Crisis
No one has a crystal ball that can predict when and how the economic fallout from the coronavirus will end. But community banks need a way to understand how their capital will fare as conditions change – and which loans they need to watch.
In a new ElevateTalks podcast called How Pandemic Stress Testing Can Position your Bank for Success, Invictus CEO Adam Mustafa explains how pandemic stress testing can give banks the crucial insights they need in these uncertain times. The 35-minute session, hosted by Elevate President Michael Delucchi, covers why it is essential for banks to know their margin of safety, how to use stress testing to calculate a bank’s ALLL, why banks should segment their most at-risk loans, and more.
This episode is essential listening for bank CEOs, CCOs and CFOs who want to guide their banks through the pandemic and beyond. The beauty of the proper stress testing, Mustafa explains, is it not only helps banks now as the crisis unfolds, but also positions them to take advantage of opportunities when the crisis is over.