December 02, 2009

TriNovus announced the launch of BankRisk, a comprehensive stress test and risk management solution that proactively evaluates the effects of adverse economic conditions on a bank's comprehensive loan portfolio.

TriNovus developed BankRisk as a tool for banks to utilize partly in response to the federal banking regulators' concerns about community banks' increased participation in commercial real-estate lending, according to a release.

Stress testing enables a bank to project future portfolio strengths and weaknesses based on hypothetical conditions that are imposed on the institution's loan data. It quantifies the effect of adverse economic conditions and identifies problem areas for the bank in advance.

"BankRisk from TriNovus is a robust stress testing and risk management tool that every financial institution should implement, said Dr Tim Yeager, an associate finance professor at the University of Arkansas and the Arkansas Bankers Association Chair. Yaeger consulted with TriNovus on the development of BankRisk.

Along with predicting the effect of potential adverse economic conditions on the loan portfolio, BankRisk will apprise banks of inherent risk exposure and allow the management team to effectively evaluate capital and liquidity needs while satisfying regulatory requirements, TriNovus said.

BankRisk can also detect areas of high-risk loan concentrations and reduce exposure, help make lending and refinancing decisions and prepare for regulatory scrutiny, the vendor said.

Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in ...