Cash flow projection is an important part of ALM and Balance Sheet Management, however it is difficult to project the cash flows for many of the products as they are largely dependent on the behaviour of customers which is influenced by external factors.
For such asset and liability products, financial institutions use Behavioural Models to estimate the future behaviour of assets, liabilities, and off-balance sheet items and to arrive at inputs for Liquidity Management, Interest Rate Risk Management and other Balance Sheet Management aspects.
Surya Soft’s Behavioural Analysis tool provides a comprehensive solution to financial institutions to conduct Behavioural study of its Assets and Liabilities. The tool is highly parameterized and allows the setting up of various Behavioural Analysis models to suit the nature of data and requirements of a Financial Institution.
BASEL LCR Stress Scenarios:
- Core and Volatile Analysis of NMDs
- Premature of Rollover Analysis of TDs
- Prepayment Analysis of Loans
- Analysis of undrawn commitments of CCOD
- Analysis of LC Development and BG Invocation