AFFORDABLE SOLUTIONS FOR ASSET/LIABILITY MANAGEMENT

Credit unions of all sizes now consider Asset/Liability Management (A/LM) modeling a must-have for interest rate risk analysis. A/LM modeling also helps with forecasting, budgeting, and strategic planning.

Larger credit unions with complex balance sheets may have staff dedicated to A/LM, while other credit unions may use a third-party provider. Smaller, non-complex credit unions may use Gap and ratio analysis.

But, is this enough? Is it affordable?

Southwest Corporate believes A/LM analysis should be affordable for credit unions of all sizes and complexity. So we developed affordable solutions. The Standard A/LM Service and the Comprehensive A/LM Service are now available through Southwest Corporate Investment Services’ A/LM department.

The Standard A/LM Service analysis report uses a credit union’s NCUA 5300 Call Report data. For a small monthly fee, credit unions receive hands-on guidance from experienced A/LM specialists and semi-annual or quarterly Gap analysis. More complex credit unions may add Net Economic Value (NEV) analysis. The Standard A/LM report includes a written synopsis of results, executive summary, current and historic financial results and ratios, and liquidity and interest rate risk analyses.

The Comprehensive A/LM Service uses account level detail to process a credit union’s interest rate risk analysis on the BancWare ALM 5 model. For a one-time set-up fee, and a reasonably-priced annual fee, credit unions receive hands-on guidance from experienced A/LM specialists. This guidance includes a quarterly or monthly NEV and Income Simulation report with a written synopsis of results, executive summary, and assumption detail. In addition to the presentation-ready reports, credit unions may use “what-if” analyses to confirm business plans or to test the impact of new products.

To determine which service is right for your credit union, contact an account executive at 800.301.6196 or email alm@swcorp.org.

A/LM Information Links: