Asset Liability Management

VBC’s modeling value proposition is simple: Your Success is Our Priority. We provide strategic advice, recommendations and insight to help with the challenges of managing balance sheet risks, maintaining regulatory compliance and maximizing performance. VBC offers a full suite of customizable services, ranging from individual components to a comprehensive fully integrated risk management modeling program.

Asset Liability Modeling

We provide strategic ALM modeling and risk reporting designed to meet the needs and overall objectives of each institution. Based on the Institution’s balance sheet complexity, overall objectives and available budget, VBC employs several industry-leading ALM models to fit the unique characteristics of your chart of accounts, balance sheet and institution.

Liquidity Modeling and Stress Testing

Utilizing cash flows from the A/L model, we create a fully customizable, multi-scenario liquidity stress test model. Unlimited scenarios can be provided and are typically based on a theme, such as a capital markets or institution specific stress event. Additional VBC recommended and Institution requested scenarios are also included. The model incorporates key assumptions such as loan losses, deposit outflow and access to wholesale funding.

Funds Transfer Pricing and Profitability

VBC’s integrated FTP and Profitability applications help Institutions optimize lending and funding rate decisions. As the balance sheet and income statement can be loaded at the GL level, profitability can be customized by customer, product, branch, profit center, etc. The combination of an integrated FTP and ALM system at the GL level removes reconciliation issues, while permitting an efficient and organized process. The application also has the functionality to include customized activity-based costing and the distribution of below the line income and expense.

Budgeting and Planning

VBC’s Budgeting and Planning application utilizes the Institution’s balance sheet and income/expense projections, specific growth strategies and tax rates, along with financial and operational drivers to both project results and evaluate ALM analytics and balance sheet impacts of different potential strategies. Our comprehensive solution provides both the top-down and bottom-up approach to financial and operational budgeting, long-term planning, rolling forecasts, and capital budgeting at the GL, departmental and aggregate levels.

Case Study: Need to Transition to a New ALM Model Quickly? No Problem!