Moody's Analytics offers a powerful combination Asset and Liability Management (ALM) Solution for banks that integrates enterprise ALM, liquidity risk management, funds transfer pricing, and regulatory reporting capabilities into a seamless enterprise platform.
Moody's Analytics ALM Solution delivers comprehensive asset and liability management, encompassing interest rate risk management, liquidity risk management, funds transfer pricing (FTP), multi-factor behavior modeling, and balance sheet management capabilities. The solution leverages data from Moody's Analytics data management platform, allowing banks to manage their ALM and liquidity alongside their risk management and regulatory compliance work for Basel III, IFRS 9, and stress testing.
Integrate ALM into business management
The powerful capabilities of the solution enable ALM to be fully integrated into the management of the business. FTP capabilities allow banks to apply a single, consistent cost of capital across the business. This allows senior management to optimize the distribution of capital across the business to meet strategic objectives. The cash flow capabilities can be used to calculate the liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) to help deliver efficient regulatory compliance and business management.
Leverage powerful tools for ALM
Our ALM solution includes capabilities that reduce the complexity of managing the most sophisticated requirements. The chart of account structure captures, organizes, and classifies all financial instruments on the balance sheet, in a tree-like structure, for ease of management. It provides the foundation for defining behavior models and forecasts. The multi-factor behavior model allows banks to model client behavior accurately, including loan prepayment, loan commitments, term deposit early redemption, and non-maturing deposits. It also provides deep insight into both ALM and balance sheet to support management decision making.
The RiskConfidence ALM system offers integrated enterprise ALM, FTP, liquidity risk management, market risk and VAR, and business and regulatory reporting.