Asset/Liability Management Consultation

R₂Metrics advises banks that wish to review the effectiveness and results of their Asset/Liability Management and Investment Policy. Our review centers on the appropriateness of current risk levels as defined by:

• Change in net interest margin (NIM) and net interest income (NII) over time horizons up to 10 years
• Average maturities of loans, bonds, and large funding categories
• Yield sensitivity
• Principal cashflows
• Sensitivity to market risk
• Sensitivity to option related risk like loan and bond refinancing, early redemption of CD’s, and optionality of FHLB advances
• Liquidity measurements and stress testing
• Market based solutions to undesirable risks