A/L Benchmarks® is the latest generation of asset/liability management models built by Olson Research Associates, Inc. As a leader in asset/liability management systems for over 40 years, our team of analysts brings an exceptional level of experience to your bank. You manage your bank…we manage your model.
A/L Benchmarks® is designed for community bankers who need a robust interest rate risk analysis, but have neither the time nor expertise to learn to model. In fact, Interest Rate Risk analysis is our specialty, which means that we are dedicated to providing a solid analysis of your bank’s risk to Earnings or Equity.
Validation and Accuracy
The consistency and accuracy in our modeling approach over the past 40 years has gained recognition from regulators, bankers, accountants, and analysts across the industry.
Three major components of model operation are information input, processing, and reporting. Therefore, the scope of our review included the following:
Independent review of logical and conceptual soundness of the Model
Comparison of Model output to other Models for forecasting reasonableness
Adequacy of documentation supporting Model assumptions/logic
Evaluation of the methods utilized to deliver Model inputs
Review of change control procedures
- Data Inputs
The modeling process has the ability to be as complex or as effortless as your bank requires.
- Standardized Data
The model begins with your Call Report because that data is consistent and assumed to be accurate. The A/L Benchmarks® model will essentially reverse engineer the rich detail of the Call Report into a balance sheet and an income statement for your analysis.
- Data Files and Service Kits
As you develop and use A/L Benchmarks® as a tool, you can refine the accuracy of the analysis by providing more detailed inputs, such as: detailed cash flow characteristics, maturity and re-pricing data, specific FHLB advance data, rate forecasts, loan and deposit growth, as well as investment securities and long-term debt forecasts. This allows us to replace some of the assumptions of the model with known quantities. These inputs are collected from your bank either through electronic data downloads or through a "workbook" approach that we call "service kits."
- Standardized Data
Absent specific data or inputs from your bank, the model simply uses the data from your Call Report and assumes level balances.
- Shock Analysis
A/L Benchmarks® stress tests your earnings and equity and provides you with measures of Earnings at Risk (EAR) and Value or Equity at Risk (EVE). Stress testing is a barometer that allows you to see the potential impact of rate changes so that management can adequately prepare for the future.
The outcome of processing is a series of reports that allows you to appropriately identify, measure, monitor, and control your financial risks. The reports include: Industry Report, Peer Report, Executive Report, and Board Report.
Olson Research guarantees timely delivery of data and reports. Timing is especially critical when processing 4th quarter data for SFAS107 Fair Values. Accountants and auditors have come to rely on our quick response to their end-of-year deadlines.
"I want to thank you and your organization on the fast turn around for me. It is greatly appreciated."
--Michael R. Ferraro CPA Matawan, NJ
A/L Benchmarks® is a time tested approach that uses standardized methods and assumptions, yet is fully capable of customization to meet the complexity of your bank.
For more information about how A/L Benchmarks® can meet your asset/liability management needs, please contact us: firstname.lastname@example.org.