FinPro’s Asset Liability Management Review service will provide an independent review of a bank’s current asset liability management report and process.
FinPro conducts quarterly detailed ALM modeling for nearly 100 clients of different asset sizes and with different balance sheet structures. This provides FinPro with expansive market knowledge and expertise regarding ALM modeling assumptions and processes.
- Perform an independent review of the Bank’s current interest rate risk report, assumptions, processes and procedures for analyzing interest rate risk
- Review the Bank’s interest rate risk policies
- Interview Bank managers to determine the appropriateness of the assumptions
- Discuss possible alternative assumptions with management
- Provide management with comments, suggestions, and letter summarizing FinPro’s findings
- Regulators have stated in Financial Institution Letters that asset liability management models must be validated.
- It is key to conduct an independent review of the client specific assumptions and information utilized even when the mechanics and mathematics of the measurement model have already been validated.