Manage your bank, not your model

Creating a call report data file

It’s end-of-year reporting time again. That means most of our clients are working in the “can I have my reports back yesterday?” frame of mind. We try and fine tune our processing schedule to turn around our report sets quickly... Read more →

What are core deposit decay assumptions? here's a quick answer...

At least once a week we get a question about core deposit decay assumptions. It’ll typically be worded something like this: How do the numbers we put in for the decay assumptions effect the IRR modeling? It a good question;... Read more →

I thought we were beyond using the gap report to measure interest rate risk

I got feedback from two clients on my previous post about the gap report and callable securities. One was the client in question, the other from someone who read the post. (That blows my theory of zero readers out there.)... Read more →

Callable securities, interest rate risk, and the gap report

I was reviewing with a bank client (and his examiner) yesterday one of the short-comings of the gap report as an interest rate risk measurement tool. This particular bank has a large volume of callable securities that are likely to... Read more →

Web resources on interest rate risk

In my previous post I mentioned a good resource for introducing bank directors to financial ratios. I took a little flak from my own staff because the article (or post) didn’t mention any measures of interest rate risk. Aren’t those... Read more →

The 1-2-3 of Ratios

Along with actually running our asset/liability model for all of our clients, the analysts and I spend a good bit of time on Board and Senior Management education. We look at bank financial data day in and day out, so... Read more →