Liquidity, funding, interest rate risk, capital adequacy.
2 AI translations · Banking & Financial Services
You manage the bank's interest rate risk position: modeling the sensitivity of net interest income (NII) and economic value of equity (EVE) to rate changes using EVE/NII simulations, gap analysis, duration matching, and stress testing. You present ALM results to ALCO (Asset-Liability Committee), recommend balance sheet strategies (hedging, product pricing changes, portfolio restructuring), and manage the interest rate derivative book (swaps, caps, floors). Regulatory expectations (OCC Bulletin 2010-1, interagency advisory) require comprehensive IRR measurement and management.
You manage the bank's liquidity position: monitoring daily cash flows, managing the investment portfolio for liquidity purposes, maintaining borrowing capacity (FHLB, Fed Discount Window, repo facilities), stress testing liquidity under various scenarios (deposit run, market disruption, credit downgrade), and maintaining contingency funding plans (CFP). Post-2008 regulations (LCR and NSFR for larger banks, general liquidity risk management expectations for all banks) drive much of the framework.