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04 · Capabilities

Balance Sheet

Balance sheet questions are the ones a treasury or ALM committee has to defend to a regulator and a board. We build the behavioral models, stress tests, and liquidity forecasts with the assumption registers and validation evidence that review requires.

What you might be trying to decide.

Engagements start from a decision. These are the kinds of questions balance sheet work usually begins with.

  1. 01Which deposit assumptions matter most to earnings across the rate paths we are planning for?
  2. 02How does the balance sheet behave under the severe scenario, and where does capital bind first?
  3. 03How much liquidity buffer is enough, and how fast does it erode in a stress?
  4. 04Are our segment betas still right, and what evidence would tell us they have changed?

Work we can scope.

Capabilities are areas of work, not off-the-shelf products. Each is scoped to the question, and its status is shown honestly.

No.CapabilityWhat it coversFormStatus
BS-01Call report analyticsQueryable FFIEC bank financial data.dataNeeds Confirmation
BS-02Asset-liability managementALM and interest rate risk models.modelNeeds Confirmation
BS-03Deposit modelsDeposit profitability, betas, and runoff forecasting.modelNeeds Confirmation
BS-04Bank stress testingScenario-based capital and loss modeling.modelNeeds Confirmation
BS-05Regulatory capital monitoringTracking against CET1, leverage, LCR, and NSFR thresholds.toolNeeds Confirmation
BS-06Liquidity forecastingRolling cash forecasts and buffer optimization for treasury teams.toolIn exploration
BS-07Counterparty credit monitoringEarly warning on counterparty credit deterioration.toolNeeds Confirmation
Form: data · model · tool · researchStatus reflects the internal portfolio inventory and is updated as work is confirmed

How we approach it

  • Deposit segmentation with betas, lags, floors, and migration held in a governed register
  • Rate-path scenario engines linked to earnings and economic value
  • Stress scenarios that separate macro assumptions from balance-sheet mechanics
  • Validation by backtest, benchmark, and challenger model
  • Documentation written to model risk management standards

What an engagement produces

  • Assumption register with bounds, sources, and version history
  • Scenario workbook or model with documented code
  • Validation memo and challenger results
  • Committee-ready figures with tables
  • Transfer documentation so the treasury team can run and update the model

Have a balance sheet question?

Bring the decision and whatever evidence you have. We will tell you what kind of engagement fits, and what it would produce.

Discuss a question