Net Interest Margin Volatility
For many asset/liability managers, the thought of rising rates is nothing but a history lesson. After decades of declining and low interest rates, financial institutions have come to grips that gravity is a real force on their net interest margin performance. Falling rates = falling profits. History says that as rates rise, so too will financial institutions earnings. But examining the rising rate period between 2016-18 we must ask if what came down, must go back up? Asset/Liability Management is about actively managing risk levels for performance goals. In this session we will examine how your ALCO can drive performance, not simply compliance. With increased competition for strong borrowers and core depositors, it is time to enhance the role of ALCO measuring & managing risk to look at the long-term profitability of your institution.