Over 45 years of combined experience in working with banks on finance, treasury, and ALCO related topics:
In compliance with both OCC 2011-12 and the Joint Agency IRR Advisory, this review will provide an independent review of the integrity, accuracy and reconciling data input, evaluating modeling assumptions, and validating client’s model-processing by comparing results against an independent benchmark model.
We review and assess the bank’s Liquidity Risk Management Process (“LMPs”) based primarily on the guidelines established in the Interagency Guidance on Funding and Liquidity Risk (“Interagency Guidance”) issued in March 2010. In compliance with the Interagency Guidance, the review will provide an independent review of the adequacy of the bank’s LMP’s to appropriately identify, measure, monitor, and control its funding and liquidity risk.
Following the regulatory guidance on model validations, we assess the 3 primary components of ALLL models:
We’ll review and test your data extraction, the application of your reserve for credit loss methodologies, and test calculations/reporting.