Asset Liability
Management (ALM)

We simply want what is best for our client. We offer independent fee-based advice, so we do not have financial bias as to the solution(s) an organization opts to implement. We recognize that financial institutions can meet their liquidity needs in different ways and we provide customized solutions to meet their objectives.

We believe effective liquidity stress testing requires a thorough understanding of our client’s balance sheet, business philosophies, operating procedures, and tolerance for balance sheet risk. We also believe that a thorough understanding of our client’s non-maturity deposits is a critical part of liquidity stress testing because they comprise 85% of the financial institution industry’s total deposits.

We believe that a review of ALM modeling should be comprehensive and performed in the context of our client’s policies and procedures and recent financial performance. Our model validation begins with a thorough review of our client’s ALM policies and procedures to better understand our client’s goals, objectives, and risk tolerances. Next, we review our client’s financial statements for at least the past 10 years to understand the institution’s recent financial performance.

After gaining the appropriate context for our review and recommendations, we begin our thorough review of our client’s existing ALM model and Asset Liability Committee (ALCO) reports.