The banking book is not static. Every day, there is an inflow
of funds from depositors and market activities. Every day there is an outflow
of new lending, whether consumer, commercial, corporate or market related. Management of the
banking book therefore requires a decision support solution that not only determines static
risk positions, but dynamically simulates future risks and rewards, based on business already
written and new business that will arise from normal banking operations.
 Fiserv provides multi-period simulation models that allow you to project your
balance sheet, income statement and margin through time. They quantify the impact of alternate management
strategies under different economic and rate scenarios. From simple measures of exposure such
as gap reports and parallel rate shocks, through to sophisticated probability-based sensitivity
measures such as option-adjusted earnings at risk and option-adjusted value-at-risk, Fiserv A/LM solutions provide the risk-reward answers to support strategy development for
balance sheet hedging, product pricing and product mix.
If your focus is income/margin management, planning and forecasting, Asset/Liablity Manage will
enable you to measure the sensitivity of two key A/LM target measures – net interest income
and economic value of equity – under different deterministic and stochastic rate scenarios.
A/L provides a clear framework for decision-making by incorporating the impact
of all the components that drive an institution’s risk profile.
Click here to download more information about Asset/Liablity Manager.
If you have an enterprise-wide risk management perspective, Fiserv KRM fully integrates
A/LM with market risk, credit risk, liquidity risk, Basel II and IAS 39 in a single piece of
software. The integration allows correlations between risk factors to be taken into consideration
and the evolution of risk factors modelled through the economic cycle. Credit-adjusted income
simulation and balance sheet VAR will take your A/LM analysis to the next level.
Click here to download more information about Fiserv KRM. |
