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Non-Maturity Deposit Analysis

What is non-maturity deposit analysis?

Non-maturity deposit analysis is the review of regular savings, money market, and checking accounts of a credit union to estimate the price sensitivity and expected life of those accounts. Understanding the past behavior of members and their deposits gives a credit union insight into the likelihood of these accounts in the future.

Why is deposit analysis important?

The information gained from non-maturity deposit analysis allows credit unions to determine whether their less expensive funding is likely to remain available. Income simulation, or A-L modeling, requires that assumptions are made on these deposits. A proper analysis gives a sound basis for these assumptions in many interest rate environments.

Who does non-maturity deposit analysis help?

Non-maturity deposit analysis allows CEOs, CFOs, regulators, and other credit union leaders better understand their credit union’s interest rate risk exposure. A-L modeling enables them to identify and act upon performance opportunities and potential risk threats in both the short- and long-term. Discovering the price sensitivity and the deposits that may leave in an increasing rate environment helps managers plan the balance sheet strategy more effectively.

Why QuantyPhi?

QuantyPhi will do the ground work. We will gather the data, apply the statistical analysis, compare the balance sheet makeup, and explain the results to you so you can manage the balance sheet more effectively. We know how to analyze previous pricing and balance information and calculate the relevant statistical review. Separating and properly modeling sticky and non-sticky deposits will help avoid inferior modeling assumptions.

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