Moody’s ALM solution helps financial institutions of all sizes anticipate and mitigate the risk that ripples through their balance sheets.
Market conditions can be unpredictable, but the impacts on your balance sheet shouldn’t be. Bridge today’s data with tomorrow’s goals with Moody’s ALM.
Moody’s ALM helps financial institutions of all sizes anticipate and manage the risk that ripples through their balance sheets. Leverage the data, models, and analytics required to maintain a robust view of assets and liabilities, establish financial resilience, and identify long-term growth opportunities.
Expand your solution from a single standalone module to the full suite. Leveraging the fully integrated solution suite empowers your institution to turn risk into resilience and unlock opportunity.
Moody’s ALM solution helps financial institutions of all sizes anticipate and mitigate the risk that ripples through their balance sheets.
Navigate the complexities of interest rate fluctuations by aligning duration within your portfolios. Analyze and manage funding gaps to ensure that the timing of your assets and liability cash flows are optimized, safeguarding your financial position against unpredictable market tides.
Stay ahead of yield curve movements and anticipate economic shifts with advanced scenario analysis. We equip you with the insights to not only weather the changes but also identify opportunities for growth amid the evolving economic landscape.
Protect your financial statements from the volatility of mismatched indexes within your asset and liability portfolios. Our comprehensive monitoring and flexible framework allow for the simulation of hedging strategies, including derivatives hedging and swaps to ensure your assets and liabilities remain in harmony.
Master market variability with analysis of embedded options in financial products. Prepare for changes in client behavior driven by unpredictable market movements, securing your cash flow forecasts against volatility.
Measure, manage, and report the sensitivity and impact of interest rate changes on your financial statements, aligning with evolving regulatory standards.
Southside Bank enhances interest rate risk modeling with Moody’s ALM.
Baker Tilly to expand its validation scope and improve model testing with Moody’s.
Lake City Bank adopted Moody's ALM solution, transitioning to a sophisticated cloud-based system for better risk management. This enabled swifter market responses, improved data transparency, and aligned with the bank's growth objectives.
An analysis of recent earnings calls sheds light on regional bank strategies on deposits, interest rate risk, and liquidity.
Moody's offers a five-step playbook for banks to manage liquidity and risk amid rising interest rates, providing executives with the analysis they need to strengthen their balance sheets and liquidity positions.
Moody's webinar series covers balance sheet, interest rate, and liquidity risk management, with a focus on developing an effective asset liability committee (ALCO) to navigate market dislocation and manage risk.
Asset liability management (ALM) is how financial institutions manage assets and liabilities together: cash flows, maturities, repricing, and customer behavior.
It helps measure interest rate and liquidity risk, run scenarios, support ALCO decisions, and meet expectations such as IRRBB, so the balance sheet stays coherent as rates and funding conditions change.
Pros: A more complete view of balance sheet risk, clearer management and regulatory reporting. Better decisions on funding and hedging. Stronger resilience through stress testing.
Cons: Outputs depend on data quality and assumptions. Models need governance and validation. Implementation spans process and technology. Weak adoption can create false confidence if analytics are not embedded in real decisions.
Goals typically include protecting earnings and capital from rate and liquidity shocks, aligning the balance sheet with strategy and risk appetite, supporting ALCO with timely analytics, meeting IRRBB and related expectations, and improving transparency for funding, liquidity, and hedging. Many banks also pursue an integrated program that links classical ALM to broader balance sheet management needs.
No. Moody’s Ratings does not assign ESG ratings per se, ESG risk ratings, or issuer-level ESG scores. Within its credit rating analysis, however, Moody’s Ratings may capture ESG-related considerations through tools such as Issuer Profile Scores (IPS) and Credit Impact Scores (CIS), which assess how environmental, social, and governance factors may influence an issuer’s credit profile.
In addition, Moody’s Ratings provides separate, non-credit assessment services, including Net Zero Assessments (NZA) and Second Party Opinions (SPO). As part of its SPO offering, Moody’s Ratings may also opine on alignment with regional and global standards through Supplementary Opinions, including the EU Green Bond Standard.
Our ALM solution — named category leader in the report — allows institutions worldwide to manage their enterprise-level ALM and liquidity risk as well as a broad range of regulatory and business needs.
Interested in learning more about our offerings? Our solutions specialists are ready to help.