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:
- Loan prepayments
- Non-maturity share/deposit Betas
- Non-maturity share/deposit lags
- 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