Our deposit analysis solutions empower you to quantify vital balance sheet inputs, including repricing, core deposit average lives, present values and premiums, the supply sensitivities of deposits to changes in rates paid and interest rates and minimum liquidity needs. To support mandates for sensitivity testing, our standard results are augmented to show impacts of shorter truncations (50% and 75% shorter). We identify surge balances (aka hot money) and take them into account in our analyses.
Our services empower your institution to:
The historic record of your depositors paints a detailed picture of their revealed preferences relating to core deposit supply and retention and other behaviors. Specifically, history tells us exactly how your depositors have reacted (or not reacted) to changes in financial influences such as rates and rate spreads over time. Your institution's rate paid history does the same for your repricing.
MountainView applies a high powered and sophisticated statistical methodology to comprehensively quantify your uncertain deposit behaviors using McGuire Advanced Assessment Methodology. This advanced econometric approach analyzes historic deposit data as a simultaneous equations system that reflects banking practice and consumer decision theory. Our approach produces higher precision forecasts that quantify scenario deposit total balances supplied, rates paid, and retention behaviors, plus identifies inter-category dependencies. We maintain unambiguous links from the data to all applications with a view to ensuring that audit trails are clear and complete.
Our core deposit analysis produces:
Our comprehensive deposit analysis is for institutions that seek to fully understand and leverage deposit behavior and value relationships for higher performance and compliance satisfaction. Based on our analysis, you can make improved pricing and deposit supply decisions that reduce liquidity needs and control your cost of funds. With this analysis, MountainView can help you produce higher levels of current income, while maintaining your IRR compliance. We do this by providing you with better matching of assets to fully quantified core deposit average life, premium and duration information across multiple interest rate scenarios.
We deliver our express deposit analysis to institutions that choose to more economically measure IRR in order to maintain current income performance and meet regulatory requirements.
As part of this service, MountainView delivers to you a streamlined report that provides core deposit liquidity information plus income and equity at risk IRR core deposit term and value inputs. Our report presents accurate and defensible information on core deposit balances supplied behaviors and repricing, plus average lives, durations, and premiums across multiple rate shock scenarios.
We offer a repricing/runoff analysis for our clients that want to obtain core deposit inputs for their ALM models. Using McGuire Advanced Assessment Methodology, we provide you with tailored category level core deposit ALM model inputs for base case (current rates) and for +500/-300 bp rate shocks, in 100 bp increments. We deliver to you repricing and runoff data as spreadsheet values and provide you with calculated beta coefficients, average lives, present values, and effective durations for reference or use as override inputs. MountainView formally back tests prior year actual runoff against forecasted values and our statistical analyses are updated annually as part of our three year commitment to you.