Treasury and ALM Consulting

Credit unions face many risks and among them is one of the most devastating, interest rate risk. Often termed the “creeping killer” since it does not 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 must have access to a validated model, in-house or external treasury expertise and a comprehensive understanding of the regulatory environment.  In addition, there are continual updates and new regulatory requirements for financial institutions requiring an on-going monitoring and level of expertise.

What We Offer

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, Fair Market Value, Liquidity Measures, Cash Flow Analysis 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
  • Training and education for board of directors as per the director competency requirement

For more information about Level Fives ALM Services contact Randy Tanaka at Ext. 222.