FREE WEBINAR

10-14-2015

Income Simulation & Gap Analysis-Advantages and Limitations

This webinar examines how Income Simulation is intuitive and easy to grasp, but very complex in its application.

THIS WEBINAR WILL:

  • Review the use of Income Simulation in estimating a credit union’s Interest Rate Risk(IRR)
  • Gain an appreciation of the complexity in applying Income Simulation where future assumptions are problematical and often member behavior is not financially driven
  • Understand the four major assumptions that drive income simulation:
    1. Loan prepayments
    2. Non-maturity share/deposit Betas
    3. Non-maturity share/deposit lags
    4. Share CD’s early withdrawal risk
  • Understand the challenging task of developing model assumptions that represent the most likely outcome that is also acceptable to our state and federal regulators