Meridian Feature: Asset/Liability Management
The Asset/Liability Management system generates five reports to help your bank personnel get a feel for how your bank is performing and the amount of risk that you are exposed to.
- The Static GAP Analysis Report is strictly an assessment of the risk that your bank is exposed to if rates fluctuate one way or another.
- The Projected Annualized Statement is strictly a project of where the bank will end up using different calculation methods. It is run at end of month. Typically, different G/L accounts will be best based on different calculation methods. Some banks set up a spreadsheet to set up a "fifth column" so that they may select which calculation is the best for each account. The methods include:
- Daily: The amount of money made year-to-date on each account divided by the number of days year-to-date and multiplied by 365.
- Monthly: The amount of money made in the last X months divided by X and multiplied by 12.
- Budget: If the bank made $Y and the budget says that $Z will be made in the remainder of the year, the projection is Y+Z.
- Modified Monthly: Every month is exactly like the month that just ended. Add the amount of money made this year and then assume that each future month this year will bring the same amount as last month did.
- The Comparative Statement compares the month that just ended to the same month last year. It also compares the time from January through the month that just ended to the same period last year. This is an end-of-month report.
- The Budget Statement simply shows how your budgeted amounts for the past month compare to the amounts that you actually accrued during the month. It is calculated both for that month and for the year-to-date.
- The 12-Month History is a running 12-month listing of every account. It is used to help in the budgeting process and to ensure that some accounts (phone expenses, for example) are not becoming skewed over time.
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