Track interest rate risk for thousands of banks nationwide
A critical factor in bank profitability is interest rate sensitivity. How do bank earnings, funding, and values change as interest rates move up and down? Given different funding, deposit and loan pricing strategies, how will you evaluate this variable? Echo Partner's Interest Rate Risk Grader makes identifying and monitoring this risk simple.
Interest Rate Risk Grader assesses the interrelationship of every asset and liability line item in a bank financial statement, making it easy for you to fine-tune bank financial projections. Interest Rate Risk Grader tracks the following metrics for every bank in our database:
- Rate Sensitive Assets/Rate Sensitive Liabilities
- Cumulative Gap
- Earnings at Risk
- Economic Value of Equity
The Interest Rate Risk Grader illustrates these key parameters with intuitive graphs that make it easy to compare bank results and easy to prioritize which banks to examine more closely. Interest Rate Risk Grader uses a proprietary algorithm to assign point values to each risk measure, ending up with a final numeric score that measures the relative overall interest rate risk of each bank on a 0 - 100 (100 = best) basis.
Use the numeric score to screen for particular risk levels or simply browse through the scores visualizing the risk from the graphs.