services > Liquidity > management enhancements > risk measurement > reporting template > stress testing review

Liquidity management enhancements

enhanced regulatory compliance & risk management

assist with the implementation of reporting changes

Liquidity risk management and stress-testing template
- Excel-based for usability
- programmed solutions are optionally available

assist with the development of policy language changes

recommend diversification, cash flow coverage and survival horizon limits

hard limits for board approval
soft limits for ALCO risk monitoring

recommend changes in the bank’s liquidity risk management tactics and/or strategies, including, but not limited to:

tactics to manage liquidity risk with a smaller amount of low-yielding securities held as a liquidity reserve
tactics to manage liquidity risk with not quite so low-yielding securities in the liquidity reserve
potential alternatives to solely using liquid assets for standby liquidity
the balance between secured and unsecured funding
the maturity distribution of wholesale funding
potential opportunities to change cash flow characteristics of nonwholesale cash flows

real world solutions >

real time ALCO reporting? Over the past few years, there have been days with historically high interest rate volatility. After several such days, the management of Sample Bank believed their annual budget was no longer accurate.

Working with the ALMnetwork, Sample Bank produced forecasts based on rates “as of” the prior days’ close. While not exactly “real-time” reporting, next day reporting was useful to the management of Sample Bank in comprehending their new earnings position, formulating new tactics and strategies, and fine-tuning their pricing.