Financial institutions must get three things right to succeed — credit quality, liquidity, and interest rate risk (IRR). Many institutions successfully manage the first two risks but struggle with the third. The most recent regulatory advisory confirms and emphasizes the importance of proper IRR management. ALM Advisors brings a wealth of experience identifying and managing interest rate risk, guided by exposure to a broad array of institutions and their balance sheets, and providing execution to a successful asset/liability management. Our goal is to enhance the work you are already doing and shift your focus back to the business of running your institution.
FTN Financial's ALM Advisors Group offers a number of benefits including advanced analytics, improved efficiency and reduced cost. But the most important benefit is the expert resources and support FTN Financial provides in managing interest rate risk.
A full range of support services are offered including:
- Advanced interest rate risk measurement
- Liquidity modeling
- Balance sheet consulting
- Risk mitigation
Three levels of service are designed to meet the varying needs of any financial institution.
Advisory Service — This service is appropriate for institutions that need a higher level of reporting or desire to outsource the asset-liability modeling. The requirements of the interagency advisory are directly addressed in this level.
A broad array of services includes ALCO consultation and training, liquidity analysis plus assistance in developing a contingency funding plan, evaluation of capital position, policy assistance, and alternate scenarios including yield curve twists.
Application System Service — An extracts driven service that uses detailed data from loan and time deposit systems supplemented with advanced client assumptions. This service is appropriate for more complex balance sheets and larger institutions. The reports provided are useful for measuring and managing NIM and interest rate risk.
Call Report Service — A call report driven service supplemented with client assumptions. This service is appropriate for institutions with a simple balance sheet and for compliance purposes.