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Southwest Corporate Investment Services' Asset/Liability Management (A/LM) Service utilizes the BancWare A/LM 5 model to measure your credit union's balance sheet risks. The A/LM Service produces a clear and concise report package that monitors financial performance and measures earnings fluctuations under a broad range of plausible interest-rate scenarios.
Complete balance sheet risk analysis, including:
Sophisticated data management/download that provides account-by-account modeling
Extensive validation of all data – ensures integrity of data input
Ability to define and observe the behavior of any financial instrument
Embedded prepayment options captured based on collateral type
Lattice-based valuation using the Hull and White term structure model
Comprehensive A/LM Analysis includes:
Quarterly or monthly assessment of future earnings, capital adequacy, and interest-rate risk exposure
Measurement of the credit union’s interest-rate risk including: income simulation, net economic value analysis (NEV), and gap analysis
Income simulation over a two year horizon and NEV analyses, both run under seven interest-rate shock scenarios
Reports ready for presentation to the credit union’s ALCO or Board of Directors
Presentation by SCIS A/LM specialist of the first analysis to verify all assumptions and to ensure results are understood
“What-if” analyses performed to confirm business plans and/or test the impact of new products
A/LM Consulting includes:
Personal attention and hands-on guidance from experienced A/LM specialists
Quarterly or monthly risk assessment, including interest-rate risk measurement, in-depth performance analysis and commentary
Assistance with the development of A/LM policies
A/LM education and consulting
Comprehensive A/LM analysis is available as a stand-alone service or as part of SCIS Advisory Services. Contact a National Account Executive at 800.301.6196 for more information.
