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Global Financial Markets Intelligence

Global Financial Markets Intelligence

NMD Modeling- Balance Sheet Management Considerations

A two-day intensive workshop which includes a number of timely real-life examples of best/worst practices

11-12 Apr 2022
Nashville, TN, United States of America

Why You Should Attend

NMD Modeling- Balance Sheet Management Considerations

To ensure we meet your expectations and maximise your return on training investment, we favour a classroom/workshop style set

Although our online training courses have been very successful, for many people nothing beats having the opportunity to travel to an event to meet the trainer and other attendees in person. They recognize that the networking and informal discussions that take place at face-to-face events cannot be replicated online, therefore as travel and in-person constraints begin to ease, we are excited to be able to bring you David Green’s latest program in a safe and secure in-person setting.

Depository institutions around the globe have been flooded with an unprecedented amount of liquidity due to central bank actions in the face of the coronavirus.  As a result they are struggling to determine how deposit balances will behave as the economic impact of various shutdown and stimulus strategies unfolds. Interest rates are back near zero and central banks have gone far beyond what they did during the financial crisis more than a decade ago. It is therefore as important as ever to understand the role of deposits in risk and profitability management;In the workshop the trainer will demonstrate a behavioral model for NMDs he designed.It produces monthly ALM feeds which are derived from vintage-level decay functions, rate betas and a dynamic measure of balance volatility. The model also leverages an integrated FTP engine which is used to calculate FTP rates and spreads over the full historical time series of data used to calibrate the model, the current position as well as future periods that may be considered for budgeting and forecasting exercises. By computing FTP rates directly within the behavioral model, deposit gatherers have a vested interest in considered how product behaviors (over which they have some control) drive the crediting rate they receive. They come to learn that the FTP crediting rate is not arbitrary; it reflects the economic value that is generated by each product.

About your expert trainer:

David Green, PhD, CFA has delivered over 100 virtual and in-person workshops to banks around the globe on risk and profitability management. He is the founder of David Green Advisors, a boutique consultancy firm specializing in risk and profitability management for depository institutions around the world. Dr. Green draws on lessons learned in a 25+ year career spanning banking, bank regulation, consulting and software development. Prior to consulting, he served as the Treasurer at BankUnited, the largest bank headquartered in Florida, where he was responsible for the investment portfolio, funding and derivatives, secondary marketing, FTP and ALM. Prior to BankUnited, he was the ALM Manager at SunTrust Bank where he built and managed all of the static and stochastic interest rate risk models for the bank, and worked to align a number of business functions including budgeting/forecasting, funds transfer pricing and strategic balance sheet management, all while market interest rates were increasingly significantly from 2004-6.

Dr. Green is a former Chairman of the Georgia Bankers Association's A/L Management Committee. He also served as a Bank Examiner at the Federal Reserve Bank of Atlanta, where he also spent two years in research while completing his Ph.D. He was also Chairman of SunGard/Bancware's US Client Advisory Council for many years. Dr. Green holds a Ph.D. in Economics from Georgia State University, a BS in Applied Mathematics from Georgia Tech and is a CFA charter holder. He is a frequent speaker at banking and risk management conferences and workshops. His compelling explanation of the logic of FTP, ‘Acknowledging the Elephant in the Room: The Mismatch Centre’ was recently published in A Guide to Behavioural Modelling for ALM.

And as a result of the 2020-1 Coronavirus pandemic, David has successfully transitioned to delivering his courses online, thus ensuring that banking professionals across the globe continued to benefit from his unique insights.

Pre-course questionnaire:

A detailed questionnaire will be sent to all course participants to establish exactly where the group training needs lie. The completed forms will be analysed by the course leader/trainer and followed by telephone if further clarification is required. As a result we can guarantee that the course is pitched at exactly the right level and that the issues that you regard as relevant are addressed. The course material will reflect these issues and will enable you to digest the subject matter after the event in your own time.

Who should attend?

This course is intended to benefit all members of a depository institution’s ALCO committee, ALM managers and their analysts, FTP managers and their analysts, liquidity managers and their analysts, budgeting/forecasting managers, auditors, product managers, product profitability managers, performance management personnel, as well marketing directors. Regulators, central bankers and academics will also benefit from the extensive discussions and applications of theoretical and conceptual modeling frameworks to real-world problems.

Key Topics

  • Appreciate how poor NMD modelling approaches potentially distorts the estimation of IRR, LR and profit allocation calculations
  • Learn how poorly constructed FTP rates on NMDs create performance incentives which may be good for the deposit gatherer but harmful to the bank
  • See how poorly constructed FTP methodologies create a discrepancy between perceptions around IRR and LR and product profitability
  • Understand how to address and resolve the challenges of NMD modelling at the analyst, ALM manager and ALCO-member level
  • Review practical examples and experiences which highlight the need for comprehensive and well-considered NMD modelling practices

  • Why Choose GFMI marcus evans?

    marcus evans specialises in the research and development of strategic events for senior business executives. From our international network of 63 offices, marcus evans produces over 1000 event days a year on strategic issues in corporate finance, telecommunications, technology, health, transportation, capital markets, human resources and business improvement.

    Above all, marcus evans provides clients with business information and knowledge which enables them to sustain a valuable competitive advantage and makes a positive contribution to their success.

    Voice of Our Customers
    • "Great overview of deposit modeling with thought-provoking examples and discussion points." SunTrust Bank
    • “The course is amazing; it is interactive, it is educational, and I enjoyed it so much!” TD Bank
    • "Instructor examples and expertise were instrumental in making this a successful course." Charles Schwab Bank
    • “Excellent. Not what I expected but better; it put the model into a comprehensive perspective.” Barclays
    • It is clear that the calibration process that David has designed is at least as important as the model itself; I now believe that this process is mandatory if you want to truly understand the behavior of one’s deposits and how they can positively influence the measurement and management of both risk and profitability” ALM/FTP Manager, Pinnacle Financial Partners
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    Event Contact

    For all enquiries regarding speaking, sponsoring and attending this conference contact:

    Kamelia Simeonova

    101 Finsbury Pavement, London, EC2A 1RS

    0044 203 002 3172
    Email: kamelias@marcusevansuk.com