In today’s increasingly challenging economic environment, banks need quick and unimpeded access to accurate and detailed analysis asset-by-asset and liability-by-liability.
To increase net interest margins, bank’s boards and senior managers need access to actionable and timely asset and liability information to help them manage the delicate balance between a bank’s current and potential earnings, while ensuring their institutions maintain optimal liquidity risk and interest rate risk (IRR). An in-house ALM solution, provides immediate access to real-time data and unlimited what-if simulations under user defined scenarios.
pALMs imports data from a bank’s current general ledger, loan, deposit and investment systems to provide real-time simulations that predict the effects of new products or rate and volume changes on the balance sheet. The flexibility of user-defined stress testing enables the bank to analyze risk under any potential market condition, prior to making critical investment decisions.
As a SaaS (software as a service) solution, users can run simulations and review reports on-demand. pALMs
ALM is often the most underutilized function within a bank’s risk management process. This is a costly omission that leaves millions of dollars on the table due to missed opportunities in balancing asset and liability risk and returns. When properly deployed, ALM ensures the optimal mix and allocation of assets and liabilities to maximize risk-adjusted returns.