Stress Test Simulator
The Stress Test tool (Pro feature) lets you model hypothetical adverse scenarios against any bank's latest financials.
Scenario Parameters
- Rate Shock (bps) — Simulates an interest rate increase or decrease. Affects net interest income based on the bank's rate sensitivity.
- Credit Loss (%) — Applies an additional credit loss to the loan portfolio, increasing provision expense.
- Revenue Shock (%) — Reduces non-interest income by a specified percentage.
Preset Scenarios
The platform includes five preset scenarios plus a custom option:
- Mild Recession — Shallow slowdown with modest rate cuts (−100 bps) and light credit deterioration.
- Moderate Recession — Dotcom-bust-style downturn (−200 bps, 1.5% credit loss).
- Severe Recession — DFAST 2023 severely adverse parameters (−300 bps, 3.5% credit loss, 20% revenue shock).
- GFC 2008-Style — Global financial crisis scenario (−400 bps, 7% credit loss, 35% revenue shock).
- Rate Shock (+300bp) — Rapid rate-hike cycle similar to 2022.
You can also use the Custom Scenario option to set your own parameter values.
Output
- P&L Waterfall — Shows step-by-step how the scenario flows through to net income.
- Delta Badges — Base vs. projected values for ROA, ROE, capital ratio, and NPL ratio.
- NIM Trend — Projected net interest margin trajectory under the scenario.
- Assumptions — A list of modeling assumptions used in the calculation.