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Asset and Liability Management

Interest rate risk management can be easy.

At Accolade, we believe that IRR management is important regardless of the size of the institution. However, we understand that resources, whether that is your time or your budget, can be tight at many credit unions.

Our ALM model incorporates existing data sources and simplified processes for a faster and more cost-effective outsourced solution.

Our reports are offered on a quarterly or semiannual basis depending on your needs. The comprehensive analysis you receive, with the help of our experienced staff, can highlight potential risks and opportunities within your balance sheet while meeting regulatory requirements.

 

Setup

Getting started is as simple as a phone call or email exchange. We’ll discuss your credit union’s needs, how the process works, and how we can help you leverage your results.

 

Data

Our process requires your AIRES files, investment detail, and borrowing summary. We use industry data to fill in your balance sheet, saving you time on data queries and file formatting.

 

Assumptions

Our base assumptions are built on available data, but a simple questionnaire process let’s you customize items to fit your credit union.

 

ALCO

Experienced consultants and advisers are available to facilitate your ALCO meetings, guide you through exam prep and educate your board.

 

What’s in your report?

  • Executive Summaries and Dashboards
  • NEV and NII Analyses
  • Investment Analytics
  • Alternative Scenarios

Consulting and Training

Accolade further supports your credit union with dedicated balance sheet consultants and ALM training materials. Your consultant can facilitate your ALCO or board meetings, explaining the details of your report and how to use the results in an effort to enhance financial performance. To make sure your whole team is on the same page, we offer general training modules or customized training sessions.

It’s vital to know if the underlying processes and assumptions of your ALM model are correct, whether your regulator has made a request, or your credit union is undergoing a self-review. Regular outside reviews of your model help ensure the integrity of the information you rely on to develop balance sheet strategies.

Accolade conducts a parallel run based on credit union assumptions and our asset/liability model standards. Our analysts assess the reasonableness of your model results as of the review data. We provide a complete model report as well as our assessment of significant variances that you should review and consider.