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k-ALM

®

k-ALM® is an integrated colud based solution designed specifically for small- and medium-sized banks, and contains the following modules:

  • Liquidity Stress Testing (LST) - to evaluate the impact on the bank’s liquidity and funding due to various stress scenarios, enabling the evaluation of the bank’s Overall Liquidity Adequacy.

  • Interest Rate Risk on the Banking Book (IRRBB) - assists banks in evaluating the Economic Value of Equity (EvE) for the prescribed 6 stress scenarios, and the evaluation of the impact on Net Interest Income (NII) for the parallel-up and -down scenarios

  • Liquidity (Core) - for calculating current and projected Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR)

  • Funds Transfer Pricing (FTP) - aids banks in product pricing, liquidity and funding management, balance sheet management and profitability management.

The k-ALM cloud based tool-kit is designed and developed in London, based on UK and European regulatory guidance and industry best practices. This consultancy-led solution offers a unified approach for all bank departments, including Treasury, Finance, Risk, and Compliance. It is simple and intuitive to use, with reports downloadable in Excel format for internal reports and management information packs. The solution features a detailed drill-down capability at the customer/transaction level, built-in reconciliation processes, and is highly customisable via parameterization. k-ALM® provides an agile and effective framework for business users, utilising web-based technologies for cloud-based deployment with desensitised data.

k-ALM - toolkit

Featured
Recalibration of IRRBB Shock Scenarios

In December 2023, the Basel Committee on Banking Supervision (BCBS) published a Consultative Document on the recalibration of shocks for the measurement of IRRBB. Following the consultation period, on 16 July 2024, the BCBS published the final Recalibration of Shocks in the Interest Rate Risk in the Banking Book Standard.

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SVB and Risk Management in the Current Climate

Management of liquidity risk and IRRBB in the current climate.

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Funds Transfer Pricing

Funds Transfer Pricing (FTP) plays a crucial part of the process of setting both retail and commercial interest rates. This Insight provides a brief overview of the overall FTP process and how Katalysys can help small- and medium-sized banks implement such a process.

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How can we help you?

How can we help you?

k-ALM tool-kit and software framework is used by a number of small- and medium-sized banks for the following functions:-

  • Business planning - preparing the annual budget and strategic business plan (3 to 5 years)

  • Capital stress testing - evaluating the capital adequacy under various stress scenarios, which can also be used for the ICAAP exercise

  • Liquidity stress testing - evaluating the adequacy of liquidity resources, LCR, NSFR, survival days and refinancing requirements under various stress scenarios

  • Funds transfer pricing - analysing the bank’s fund transfer pricing for both the assets and liabilities

  • Interest rate risk on the banking book - calculation of the impact of interest rate movement on the bank’s profitability

  • Daily capital and liquidity management - evaluation of the bank’s capital adequacy and liquidity buffer (including forward looking analysis) on a daily basis

  • Data warehouse - a data warehouse that can be used for analysing various trends, which acts as one of the decision making inputs for the bank’s Asset and Liability Committee (ALCO) and Executive Committee (EXCO)