Treasury and ALM Consulting

Credit unions face many risks and amoung them one of the most devastating is interest rate risk.  Often termed the “creeping killer” since it does show up immediately like a loan loss but instead gradually erodes profitability and is not noticed until it is too late.   In order to diagnose interest rate risk and manage it properly credit unions need to have access to a validated model, in-house or external treasury expertise and a comprehensive understanding of the regulatory environment.

Level Five provides a full range of ALM services some of which includes the following:

• Class 1 credit unions – Advanced Static Gap Model
• Class 2 credit unions – Earnings at Risk Income Simulation, Economic Value of Equity, Duration of Equity, Market Value, Liquidity Cash Flows etc.
• Financial Margin monthly forecasting out to 12 months with an option to go to 60 months
• Interest rate risk analysis, strategies and recommendations
• Financial performance evaluation
• Review of Structural Risk, Liquidity Risk and Market Risk policies
• Training and education for ALM staff in all areas of treasury and ALM subjects