How It Works
A/L Reporter adapts the core technology of the sophisticated Risk Analytics ALM Model to a product that is designed and priced specifically for small credit unions. Through a service-bureau approach, the software provides dynamic income simulation projections for net interest income as well as NEV under nine different rate stress scenarios. Reports are compiled from the 5300 Report and AIRES data with limited additional information from the credit union. A/L Reporter clearly demonstrates to credit union managers how changes in interest rates and the resulting changes in the cash flows of their balance sheet instruments affect future earnings and the value of their capital.
A/L Reporter provides the sophistication of the most expensive models at a much lower cost and with less time and effort. The tools provide:
- · Dynamic income simulation and NEV model that provides results under nine rate stress tests and up to 400 basis points.
- Easy installation and setup.
- Graphical displays of key information, choose from many charts and graphs.
The report set it produces includes:
- Executive Summary - designed for board members and ALCO.
- Full disclosure of all modeling assumptions - for management, regulators, and auditors.
- Back Testing Report - to assess the model's accuracy over time and interest rate changes.