We offer the best and most efficient, precise method of measuring your institution's current interest rate risk, as well as a forecasting tool you can have a high degree of confidence in. The system is detailed enough to take into account the unique characteristics of your institution while also providing concise, meaningful reports and information that allow you to make sound financial decisions.
In evaluating the adequacy or quality of an institution's risk management process, regulators are looking for rigorous analytics from an A/L system. Banks, in addition to monitoring risk from a gap standpoint, are required to analyze both earnings-at-risk (income simulation) and capital-at-risk (net economic value). In order to produce meaningful andaccurate results, each of these methodologies requires the use of sophisticated forecasting techniques as well as a detailed analysis of cash flow characteristics.
To support financial institutions in the understanding and reporting of interest rate risk, we offer two versions of the A/L manager: the Basic model and the Standard Model.
The Standard Model includes a static balance sheet forecast and two additional growth or balance sheet strategies. This is recommended for most institutions. The Basic Model only provides interest rate risk results utilizing a static balance sheet forecast as prescribed by the regulators.
- Complete monthly or quarterly IRR package
- Earnings-at-risk and capital-at-risk model simulations
- Five year forecasts with institution-specific data