ALM Economic Indicator Setup and Validation in Forecast Rates
Last updated on JULY 14, 2016
Applies to:Oracle Financial Services Asset Liability Management - Version 8.0.0 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Asset Liability Management (ALM)
How do you validate the impact of ALM Forecast Economic Indicators (EI) on results?
Economic indicator forecast:
Yearly Gross Domestic Product (GDP) growth : 4% (base scenario)
Yearly Inflation rate: 3% (base scenario)
Shock scenario: 10% up and 10% down
Is there a document or any excel validation sheet that can be used to prove the numbers due to above economic indicator shocks? What is the methodology used for economic indicator computation in OFSAA ALM? Under forecast rate assumptions, it appears that stress can be applied on currency, interest rate and economic indicators. So how to use economic indicators under forecast rate assumption n ALM?
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