Asset/Liability Management (ALM) Services
Catalyst Strategic Solutions' ALM Service understand that balance sheet risk management is an ever evolving challenge. Therefore, ALM Services empower credit unions, regardless of size or complexity, with actionable data. That data equips credit unions to manage their balance sheets effectively in a fluid economic environment.
Catalyst Strategic Solutions' highly experienced ALM team leverages a full range of services. The team nurtures industry relationships to stay abreast of market activity and to deliver customized solutions for clients.
The ALM Service offers two distinct ALM platforms to meet credit unions' diverse balance sheet requirements and management expectations. Both platforms are certified by an independent third party. This certification gives credit unions and their examiners confidence in the ALM models.
The ALM team works directly with credit unions to develop customized solutions that achieve results. Professional services include:
Hover over or tap the services below to learn more about them or click here to view the printer friendly list.
ALM reporting packages with custom options deliver reliable results to improve decision making. Models certified by an independent third party accurately quantify risk. Reports have the fastest standard turnaround times, with no added fee.
ALM analysts evaluate a credit union's ALM program. Mature models & best practices, with the most current methods, verify the soundness of risk management solutions & identify areas for improvement.
A review of internal or outsourced key modeling assumptions. Key assumption tests for accuracy & reasonableness. Identify material differences to summarize & present, along with recommendations.
An exam of balance sheet data files uncovers errant loan & deposit elements. The exam reveals data omissions & differences due to data entry errors, mergers or conversions. This helps create a more accurate & reliable reporting process.
Assumptions have an enormous impact on the reported IRR exposure. Examiners place vast emphasis in this area. This analysis evaluates account level historical data to identify specifics on withdrawal behavior & demographic attributes.
Mortgage servicing rights provide an opportunity to maintain and enhance member relationships, while managing balance sheet risk and producing income. This analysis determines the fair value of servicing rights, while assessing any impairment.
This dynamic projection identifies liquidity shortfalls across various stress scenarios. The analysis projects net cash flows based upon multiple factors, such as growth, unfunded commitments, deposit runoff, and changes in interest rates.
The above service offerings are further supplemented with:
Users are empowered to perform “on-the-fly” analysis in TranZact. Managers can perform ad hoc analysis & generate instant results, perfect for a quick answer during Board & ALCO meetings, strategic planning or brainstorming sessions.
A dedicated, experienced team reviews credit union analysis and offers consultation with management, the Board or ALCO.
Policy review and updates, as needed, to ensure proper control, compliance, and oversight, considering asset size and balance sheet complexity.
The team has extensive knowledge and experience in ALM and balance sheet management. In-person visits can be tailored to meet credit union needs.
A fair value analysis provides a concise view of the current balance sheet based on current market conditions.
Beyond traditional ALM services, Catalyst Strategic Solutions also assists in the following areas:
- Balance sheet advisory
- Derivative hedging
- Bond accounting
- Investment portfolio reporting