Non-Maturity Deposits – A New Machined Learned Framework For ALM
South State Correspondent
APRIL 3, 2023
While there have always been problems in banks’ asset-liability models (ALM) and liquidity stress test models, the current environment exacerbates this problem. As a result, most banks are overestimating their liability sensitivity and, thus, their deposit value. This reduces the duration of these non-maturity deposits.
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