balance-sheet-optimization

What problem does it solve?

This Skill helps financial institutions optimize their balance sheets for improved efficiency, capital allocation, and profitability by analyzing key financial metrics and strategic trade-offs.

Core Features & Use Cases

• Balance Sheet Efficiency Analysis: Computes and dashboards key metrics like ROAA, ROAE, RoRWA, and NIM.
• Product Economics: Maps FTP-adjusted economic profit for each product line to guide capital allocation.
• RWA Optimization: Identifies opportunities to reduce regulatory capital requirements through portfolio rebalancing and risk mitigation.
• HQLA Portfolio Optimization: Maximizes yield on High-Quality Liquid Assets within regulatory constraints.
• Funding Mix Strategy: Evaluates optimal liability structures for cost and stability.
• Scenario Planning: Develops strategic scenarios (e.g., Return Maximization, Capital Efficiency) with projected impacts.
• Use Case: A bank's ALCO committee needs to prepare for its quarterly review. This Skill can analyze the current balance sheet, identify areas for RWA reduction, optimize the HQLA portfolio for better yield, and recommend strategic shifts in asset and liability mix to meet profitability and capital targets.

Quick Start

Analyze my bank's balance sheet for optimization opportunities and provide strategic recommendations for the next ALCO meeting.