ALM Specialty Services

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Highly focused solutions to meet your every Asset Liability Management need.

DCG offers a range of project-based consulting engagements to serve the very specific asset liability management needs of clients.

While not part of our main menu of services, these focused solutions are developed for clients on an as-needed basis. Some of our specialized services include:

Deposits360° (Non-Maturity Deposit Studies)
Understanding the behavior of your non-maturity deposit base is an important part of an effective balance sheet management process. Given the impact these assumptions have along with the increased uncertainty of future deposit retention, regulators are paying closer attention to an institution’s ability to substantiate the assumptions used in the decision-making process. Our process affords institutions an opportunity to gain additional insight into their customers’ behaviors and develop empirical support for the critical assumptions used for income simulation, economic valuation and funds management.

Prepayments360° (Loan Prepayment Studies & Analytics)
Capturing the embedded optionality in your loan portfolio is an important element of effective ALM modeling and budgeting. Even when using sophisticated loan prepayment models, it is important to understand how well the model tracks to actual historical prepayment experience. Using detailed account information, we can develop empirical support for the prepayments used for the institution’s various loan products. Analysis includes a summary of historical trends in prepayment activity including curtailment, pay-offs and rate modifications. To the extent that sufficient data is available, more robust analytics can be performed and used to tune your prepayment modeling assumptions.

Capital360° (Capital Planning & Stress Testing)
This service will help develop a dynamic interest rate risk model that assists the organization in the development of its long-term capital plan. Our experts will also aide in the development of internal capital targets, stress-testing/resolution strategies,and provide guidance and insight into the stress parameters that should be applied and produce the detailed analysis and “regulatory ready” documentation.

ASC 825 (Economic Valuation)
We can assist you in your year-end ASC 825 reporting requirements by preparing the calculation and providing your institution with an “audit ready” reporting package that includes all of the supporting information behind the calculation.  This service can also be provided on a quarterly basis.

Budget Modeling & Strategic Planning
It has become increasingly difficult for institutions to maintain budgets and strategic plans internally. DCG has the staff and expertise to assist in providing customized budget modeling and strategic planning services to meet your needs — from single bank simulations to extensive cost center or multi-bank holding company budgets and plans.