Hypothetical to Actionable: From CCAR to CRE Market Factors

This post was first published on the Arcadia Data website.

DFAST and CCAR require bank holding companies to report, in detail, how they would respond to hypothetical market scenarios that represent macroeconomic shocks like a housing meltdown or a stock market crash. The data used by each company to predict losses and create a response plan must be actual data, not approximated. Using the commercial real estate market as an example, this post explains how a location-based BI on Hadoop solution provides analysts and portfolio managers with a flexible way to use microeconomic real estate market factors as the foundation to a robust and actionable response to regulators.