Non-Maturity Deposit Studies: Creating Value or Adding Risk?
With uncertainty in the direction and timing of future interest rate movements, ensuring that non-maturity (NMD) deposit behavior assumptions are properly defined and calibrated to current market conditions is vital to effective asset/liability management.
Whether the focus is for regulatory compliance for IRR measurement, liquidity risk assessment or development of tactical or strategic ALM objectives, a solid and transparent process for developing NMD behavior forecasts is critical. Simply put, a well-constructed NMD analysis framework is imperative and a poorly constructed one may be creating risks you didn’t even know you had.
In this webinar, we will discuss the key characteristics of well-developed NMD analyses, examine the potential consequences of common techniques for quantifying NMD behaviors and share insights on how you can gain greater confidence in your NMD forecast inputs.
- Discuss why examiners are pushing back on NMD assumptions and why simply doing a study based on your own data may not be sufficient
- Explore the pros and cons of the type of data that is needed as well as the length of any historic time series
- Expose the “hidden” assumptions underneath many deposit analysis methods and their potential impacts
- Discuss characteristics of well-constructed studies and how they can simultaneously provide better insights for IRR measurement compliance, improved liquidity stress assumptions and ALM decision making
Managing Director, Deposit and Loan Analytics, Velligan-Blaxall Consultants, LLC
Elaine Halliday is the Managing Director of the Deposit and Loan Analytics division of VBC. She leads the team’s efforts in helping institutions improve the quality and accuracy of their interest rate and liquidity risk analyses by providing regulatory compliant and statistically quantified estimates of the behaviors and sensitivities of ALM model inputs.
Prior to joining VBC, Elaine was Managing Director-Analytics with MountainView Financial Solutions (formerly McGuire Performance Solutions) managing the non-maturity deposit, loan prepayment and ASC related analytics services for bank and credit union clients. She was also Vice President-Sales prior to joining the analytics team and assisted clients in meeting regulatory requirements, providing valuation services associated with acquisitions as mandated by the ASC and improving asset liability management processes through ALM model validations, core deposits and loan prepayments analyses. Elaine previously served as Vice President-Business Support Manager at Bank of America where she had numerous roles in both finance and operations for the Credit Card division, and she has been involved in multiple aspects of asset liability management since her career began as an ALM analyst for Fiserv (formerly IPS-Sendero).
Elaine received a Master of International Management and Accounting from the University of Texas at Dallas, and is a CPA.
Registration to the live session includes:
- One online connection
- CPE credit for registrant
- Permission to reproduce the handouts and other written material for additional attendees at your location
Only registered attendees of the live session can obtain CPE credit. Attendees of FMS live webinars also receive two views of the On-Demand version of the program they attend. Use this bonus feature to share the program with colleagues or as a refresher at a later date. Instructions for viewing the on-demand session will be emailed to you at the conclusion of the live event.
|| Earn up to 1 hours of CPE credit.
- Level: Basic
- Prerequisites: None
- Advance preparation: None
- Field of Study: Finance
- Instructional Method: Group Internet Based
- Length: 60 minutes
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