Income Simulation and Analysis, by modelling the future business plan, is extremely important for Banks in terms of decision making and driving business goals.
Surya’s Income Simulation enables a bank in this modelling by adding the future business from products having a determinate maturity like Loans & Deposits, and end-of-period balances for indeterminate maturity products like CASA.
A simulated income report is produced after considering the business income/expense for all existing contracts and the income/expense from new businesses based on a variety of parameters like maturity patterns and disbursal patterns.
More importantly, the plan is validated to ensure that there is no Asset-Liability gap and forces the simulator to create synthetic contracts in case of any mismatch, thus providing a realistic picture.
This simulation is then used to drive goals at the product level and acts as a powerful tool for business planning and decision-making.
BASEL LCR Stress Scenarios:
- Income Simulation: Simulate interest income/expense of indeterminate maturity products, existing contracts as well as proposed new contracts.
- Asset-Liability Balancing: Analyze asset-liability gap by providing the financial business plan, forecast rates
- Impact Analysis: Analyze impact on NII due to interest rate repricing of floating rate contracts and the impact due to Premature closures of Loans and Deposits
- Scenario Analysis: Create and compare multiple simulation scenarios with rate shocks, forecast rate sets, business targets etc.