Bank financial steering

Banking financial management: consultancy on

• optimising the allocation of resources (capital, operational expenses, etc.) to the business lines and entities of a banking group,

• financial projections (strategic plan, budget, forecasts) by modelling financial indicators (balance sheet, income statement, solvency (RWA) and liquidity (LCR, NSFR, etc.) risk metrics , etc.).

Modelling

This automation implies statistical modelling of the level and/or evolution of the indicators to be projected, which is now required by the European financial supervisor, particularly with a view to carrying out stress tests.

The consultancy services (or execution services as such) relate precisely to this modelling, which is rigorous and sophisticated but robust and perfectly accessible to finance department practitioners. The methods employed coincide in part with those used to generate random scenarios.

The offer potentially covers all the indicators to be projected, in a given macro-economic scenario: production volumes, rates or prices, balance sheet outstandings, net banking income (NBI) and operational expenses, solvency (RWA) and liquidity (LCR, NSFR, etc.) risk metrics, etc.).

Economic projections

In addition to the need to measure and analyse the commercial and financial indicators observed, the financial management of banks is devoting more and more resources to forecasting them. This applies, of course, to multi-year strategic forecasting exercises - with multiple central and stressed scenarios - and to traditional annual budget construction, but also - and even more so - to infra-annual projections (rolling forecasts).

Ideally, these projections are drawn up on the basis of an analysis of current dynamics, macro-economic scenarios provided by economists and forecasts from the sales department. However, the very tight deadlines and high frequency of these exercises mean that the finance department that carries them out often has to make do with only some of the input data and automate the production process.

Allocation of resources

It is the most decisive step in a budgetary procedure or strategic plan, both in the framing and arbitration phases. Our long experience in this area implies that we can offer you methods that are rational, innovative, fair and robust.