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Asset and liability management (ALM) for banks

Market conditions can be unpredictable, but the impacts on your balance sheet shouldn’t be. Bridge today’s data with tomorrow’s goals with Moody’s ALM.

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How can we help?

Moody’s ALM helps financial institutions of all sizes anticipate and manage the risk that ripples through their balance sheets. Leverage the data, models, and analytics required to maintain a robust view of assets and liabilities, establish financial resilience, and identify long-term growth opportunities.

01
Establish financial resilience

Accurately measure market and credit risks and evaluate the many variables that impact a balance sheet. Stress test a range of scenarios to uncover the actionable insights that empower you to make decisions that establish financial resilience.

02
Gain a holistic view of risk

Risk does not stay contained when all parts of your business are interconnected. Model and manage your risk exposure with comprehensive assumptions and scenario sets to make key business decisions related to asset and liability management.

03
Go beyond classical ALM

With a SaaS-based modular design, the ALM solution can be scaled up to tackle needs from classical ALM to liquidity and investment management, capital planning, impairment accounting, and credit portfolio management.

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Speak to our team today

Get in touch

Asset and liability management

Moody’s ALM solution helps financial institutions of all sizes anticipate and mitigate the risk that ripples through their balance sheets. 

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Effectively manage your interest rate risk

01 Gap and repricing risk

Gap and repricing risk

Navigate the complexities of interest rate fluctuations by aligning duration within your portfolios. Analyze and manage funding gaps to ensure that the timing of your assets and liability cash flows are optimized, safeguarding your financial position against unpredictable market tides.

02 Yield curve risk

Yield curve risk

Stay ahead of yield curve movements and anticipate economic shifts with advanced scenario analysis. We equip you with the insights to not only weather the changes but also identify opportunities for growth amid the evolving economic landscape.

03 Basis risk

Basis risk

Protect your financial statements from the volatility of mismatched indexes within your asset and liability portfolios. Our comprehensive monitoring and flexible framework allow for the simulation of hedging strategies, including derivatives hedging and swaps to ensure your assets and liabilities remain in harmony.

04 Option risk

Option risk

Master market variability with analysis of embedded options in financial products. Prepare for changes in client behavior driven by unpredictable market movements, securing your cash flow forecasts against volatility.

05 Interest rate risk in the banking book (IRRBB) reporting

Interest rate risk in the banking book (IRRBB) reporting

Measure, manage, and report the sensitivity and impact of interest rate changes on your financial statements, aligning with evolving regulatory standards.

Gap and repricing risk

Navigate the complexities of interest rate fluctuations by aligning duration within your portfolios. Analyze and manage funding gaps to ensure that the timing of your assets and liability cash flows are optimized, safeguarding your financial position against unpredictable market tides.

Yield curve risk

Stay ahead of yield curve movements and anticipate economic shifts with advanced scenario analysis. We equip you with the insights to not only weather the changes but also identify opportunities for growth amid the evolving economic landscape.

Basis risk

Protect your financial statements from the volatility of mismatched indexes within your asset and liability portfolios. Our comprehensive monitoring and flexible framework allow for the simulation of hedging strategies, including derivatives hedging and swaps to ensure your assets and liabilities remain in harmony.

Option risk

Master market variability with analysis of embedded options in financial products. Prepare for changes in client behavior driven by unpredictable market movements, securing your cash flow forecasts against volatility.

Interest rate risk in the banking book (IRRBB) reporting

Measure, manage, and report the sensitivity and impact of interest rate changes on your financial statements, aligning with evolving regulatory standards.

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Category leader in Chartis ALM Technology Systems 2023 Report

Our ALM solution — named category leader in the report — allows institutions worldwide to manage their enterprise-level ALM and liquidity risk as well as a broad range of regulatory and business needs.

Read the report

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Interested in learning more about our offerings? Our solutions specialists are ready to help.