OCC terminates portfolio stress test tool

The OCC, in Bulletin 2021-21, has announced it has terminated its Portfolio Stress Test Tool for Income-Producing Commercial Real Estate on BankNet. The Bulletin indicates the OCC has removed the tool and associated documents from BankNet, and deactivated the email address that had been associated with the tool.

The OCC has provided the tool since 2012 to demonstrate basic portfolio stress testing concepts and to help banks conduct portfolio stress testing on income-producing commercial real estate portfolios. The use of the tool was optional. Today, according to the OCC, several methods and tools are available for performing loan portfolio stress testing, and banks generally have satisfactory policies, processes, systems, and, in some cases, advanced approaches for conducting ongoing portfolio stress testing. In addition, the OCC has observed decreased use of the tool. For those reasons, the tool has been terminated.