Commercial Real Estate (CRE) lending can be a powerful growth engine for banks—but only when managed strategically. Many banks limit their expansion due to outdated, one-size-fits-all concentration policies that don’t account for...
Podcast: Why Banks Should Know Their Margin of Safety During the COVID-19 Crisis
No one has a crystal ball that can predict when and how the economic fallout from the coronavirus will end. But community banks need a way to understand how their capital will fare as conditions change – and which loans they need to watch.
In a new ElevateTalks podcast called How Pandemic Stress Testing Can Position your Bank for Success, Invictus CEO Adam Mustafa explains how pandemic stress testing can give banks the crucial insights they need in these uncertain times. The 35-minute session, hosted by Elevate President Michael Delucchi, covers why it is essential for banks to know their margin of safety, how to use stress testing to calculate a bank’s ALLL, why banks should segment their most at-risk loans, and more.
This episode is essential listening for bank CEOs, CCOs and CFOs who want to guide their banks through the pandemic and beyond. The beauty of the proper stress testing, Mustafa explains, is it not only helps banks now as the crisis unfolds, but also positions them to take advantage of opportunities when the crisis is over.
Click here to listen to the episode.
More recent posts

Invictus Blog, banking, liquidity, stress testing, cre
Why the Worst Loans Are Made in the Best Times: Lessons from Banking History
Author: Adam Mustafa, President
One of the most critical principles in banking is that the worst loans are often made in the best of times. This paradox underscores how economic conditions at the time of a loan's origination can...