All presented with a single engine and sophisticated analytics, ensuring consistency, holistic view of risk and enabling banks to make strategic business decisions.
The RiskConfidence solution answers a demand for a strategic balance sheet management tool and allows banks to manage enterprise-wide ALM and improve financial performance.
Understand contractual terms, behavioral characteristics and profitability components:
- Cash Flow/Liquidity
- IRR Sensitivity
- Valuation
- FTP/Profitability
- Risk Profile
Leverage IRR and macroeconomic scenarios to understand future risk and opportunities:
- Stable Balance Sheet
- Business growth
- Behaviors
- Budget
- Macroeconomic
Rely on a platform and underlying assumptions that can support complex decision-making process:
- Buy/Sell
- Impact analysis
- Mortgage servicing
- Hedging strategies
- Optimize
Our solution brings you a breadth of historic data, analytics, scenarios and models giving you the tools to understand and accurately manage your entire balance sheet.
- Historic data and trends lets you analyze your own historical tendencies, such as loan pre-payments and core deposit trends.
- Macroeconomic scenario forecasts help you with business planning, CECL/IFRS9, stress testing and risk management.
- Interest Rate and Credit risk analytics handle a wide range of financial instruments and scenarios to expand your balance sheet capabilities.
- Models enable scenario- specific growth assumptions.
Our solution provides a platform that integrates with impairment, forecasting and planning to offer capabilities beyond core ALM.
Exchange, interpret and use data cohesively to create powerful business insights.
Meet the latest regulatory reporting requirements and more. Numerous standard reports are available in Excel and PDF format for new business, prepayment/decay, economic value metrics, future/forward valuation and gap analytics, duration, CECL and IRR compliance. Reporting and analytical screens help you to see the application and intermediate steps of the modeling, allowing you to trace the path of your data from input to the impact on your results.
Credit models and economic scenarios that allow to produce credit-adjusted ALM analytics.
Embedded Economic Scenarios: Three scenario narratives with selected Economic Index Forecasts: Moody’s Baseline, Severe Downside and Stagflation scenario
Multi-factor proprietary Moody's Analytics Models: PP, PD and LGD Models that include: Borrower characteristics, Loan characteristics and Macroeconomic data.
Relevant resources
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Whitepaper: Removing the ‘Barrier’ of Valuation in Bank Resolutions
An international push to make bank resolutions viable is putting economic valuations of bank balance sheets front and center. Now, regulators are getting specific about what they expect from banks and the repercussions if they fail to do so. This whitepaper discusses the challenges and gives guidance on best-practice methodologies to resolve them.
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Whitepaper: Liquidity Risk: Time to Automate and Integrate.
The current environment presents banks with an excellent opportunity to get off the compliance treadmill. This whitepaper discusses how, in pursuit of this objective and to reduce overhead costs, we believe that banks must integrate the management of liquidity and interest rate risks under ALM. And move toward true risk-adjusted pricing by implementing the technology platforms that support such solutions.
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Whitepaper: Do Funds Transfer Pricing (FTP) Methodologies Still Work with Excess Deposits?
This whitepaper discusses three possible ways to address glut deposits with Funds Transfer Pricing (FTP) strategies.
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Whitepaper: Funds Transfer Pricing in Banks: What are the Drivers?
FTP drivers used by banks generally fall into main three areas. In this paper, we investigate the reasons a bank might choose one approach over another, and show why banks might want to align risk-based pricing as a primary driver in their FTP frameworks, with other drivers presented as transparent modifications.
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Article: Supporting IBOR transition
Supporting IBOR Transition: Alternative Reference Rate Capabilities in Moody’s Analytics RiskConfidence™ Software
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Webinar: Where is my Yield Curve? Forecasting Post IBOR Transition
IBOR transition is happening at different speeds in different jurisdictions. In some, the impact on ALM, interest rate risk, FTP and balance sheet forecasting are coming into focus, now that frontline risks are largely understood. In this session a panel of experts discuss how they are tackling these important subjects, what challenges they’ve faced and what lessons they would pass to those further behind in the transition.
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Whitepaper: Negative Interest Rates: What ALM Practitioners Need to Know
This whitepaper explores the possibility of negative rates and the impact it would have on the ALM professional
Contact our team to get a personalized demonstration of our IBSM solution. A member of our relationship management team will follow up with you shortly.
If you require immediate assistance, please contact our Client Services desk.
Americas | +1.212.553.1653 | [email protected]
EMEA | +44.207.772.5454 | [email protected]
Asia Pacific | +852.3551.3077 | [email protected]
Japan | +81.3.5408.4100 | [email protected]