ABA Endorses CRE Loan Stress Testing Solution from Banker's Toolbox

- CrestTM Rises to the Top in ABA’s evaluation of CRE Loan Stress Testing Solutions -

WASHINGTON, JULY 11, 2011 – The American Bankers Association, through its subsidiary Corporation for American Banking, has endorsed Crest, the leading commercial real estate (CRE) loan stress testing and portfolio management solution from Banker’s Toolbox.
Traditionally, Generally Accepted Accounting Principles (GAAP) apply historical loss factors to manage loan risk. However, with the increasing number of banks failing due to unhealthy CRE loan portfolios, federal regulators are increasingly emphasizing a forward-looking risk management approach that focuses on portfolio level stress testing.
The Banker’s Toolbox Crest solution embodies the next generation in loan risk management by providing the ability to project hypothetical scenarios and potential impact of economic changes on a bank’s future earnings, asset quality, and capital.
Crest gives the community banker the ability to control CRE concentration risk by identifying and segmenting loans with common risk characteristics.  Bankers can then define and perform a multivariable stress tests using factors unique to their institution and marketplace resulting in comprehensive reports for the board of directors and federal examiners.  The reports will help the bank decide if the concentration presents undue risk to the institution and should be reduced or if the concentration can be effectively managed by their lending expertise.
In addition, Crest is simple to set up and maintain on an ongoing basis, yet significantly more flexible and powerful than cumbersome spreadsheets or one-time consulting projects.
 “In endorsing Crest, we are bringing our members the best-of-breed solution in the CRE loan stress testing market that will help protect institutions from future CRE loan losses and heightened regulatory scrutiny,” said John Wolff, president of CAB. “We are confident that Crest delivers precisely the type of comprehensive solution bankers are seeking in this area, and we’re excited about the outstanding value it will bring to our members.”
 “We are honored to receive the ABA’s endorsement for commercial real estate loan stress testing,” said Daniel Cho, CEO of Banker’s Toolbox. “We truly believe that if banks had begun running “what if” scenarios years ago, our nation would not have suffered the pain of so many bank failures.  Crest was designed with the community banker in mind – flexible, affordable and simple to use. Our goal is to help strengthen community based lending for many future generations to come.”
Crest is provided as a hosted solution and works with all major core processing systems in the United States.

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About American Bankers Association
The American Bankers Association represents banks of all sizes and charters and is the voice for the nation's $13 trillion banking industry and its 2 million employees.  The majority of ABA's members are banks with less than $165 million in assets.  Learn more at www.aba.com. 
About Corporation for American Banking
Corporation for American Banking (CAB) is an affiliate of the American Bankers Association that endorses bank solutions on behalf of the Association, helping banks save money, make money, and operate more efficiently. Solutions range from mission-critical insurance, compliance and risk management programs to services that help banks stay competitive and efficient through technology and business growth platforms.  More than 6,000 banks use at least one ABA-endorsed CAB program.  These programs are also supported by State Bankers Associations through co-endorsement relationships. Learn more atwww.aba.com/CAB.
About Banker’s Toolbox, Inc.
Austin, TX-based Banker’s Toolbox, Inc., helps banks manage risk and streamline compliance examinations. The company’s product suite consists of proven solutions for commercial real estate loan portfolio risk assessment, money laundering detection and reporting, fraud loss prevention and secure wire processing automation. The Banker’s Toolbox team is a unique combination of seasoned bankers and technologists who specialize in designing and delivering cutting edge risk management solutions while providing unparalleled customer service to regional and community banks. For more information, visit the company’s website at www.bankerstoolbox.com.