On October 18th, the OCC issued a Bulletin providing guidance to national banks and federal savings associations with assets of $10 billion or less (community banks) on using stress testing to assess risk in their loan portfolios. The guidance clarifies stress testing expectations for community banks and provides an example of a simple stress test framework. The OCC expects all banks to have the capacity to analyze the potential impact of adverse outcomes on their financial condition in order to establish and support their risk appetite and tolerances, set concentration limits, adjust strategies, and appropriately plan for and maintain adequate capital levels. In addition, the OCC is making a new portfolio level stress test tool for income producing commercial real estate loans available to national banks and federal savings associations through BankNet. This optional tool was developed by OCC examiners in response to requests from community bankers for more specific guidance on how to stress test loan portfolios. OCC Press Release.