One-third of depository institutions have reported receiving pressure by their examiners to conduct stress tests on their portfolios or to expand ongoing stress testing, according to a recent survey by financial service provider Sageworks. Of respondents, 99 percent fell below the $10 billion threshold at which the Dodd-Frank Act requires annual stress tests.
According to the survey, 15 percent said regulators recommended starting stress testing, while an additional 3 percent said their examiners required stress tests by the next exam. Fifteen percent said they are already stress testing but that examiners called for expanded testing.
Two-thirds of respondents said they received no pressure from regulators about stress testing. A total of 58 percent of respondents said they are already stress testing even if not required to do so by Dodd-Frank.