Bank ALM in Practice

According to Chapter 3.1.1, what was the primary driver for the significant increase in customer sight deposits in Germany between the end of year 1999 and the end of year 2021?

What quantitative shift in consumer loans as a percentage of assets was observed for Monetary Financial Institutions (MFIs) in Germany between EoY 1999 and EoY 2021?

How did German banks respond to the large inflow of overnight retail deposits between 1999 and 2021, according to Chapter 3.1.1?

What is a key regional difference in mortgage loan products across Europe as highlighted in Chapter 3.1.2?

When comparing different bank business models in Chapter 3.1.3, which type of bank is described as being more dependent on funding through sight deposits?

How is an ALM department characterized when it is run as a 'cost center'?

Which of the following is listed in Chapter 3.1.5 as a key question to ask when designing a tailored ALM framework?

In the context of NII Planning (Chapter 3.2), what term is used for the planning horizon covering calendar or fiscal years beyond the next year, typically up to 3-5 years?

According to the study by Busch et al. (2021) mentioned in Chapter 3.2.4, what is the estimated impact on German banks' net interest margins for every additional year following a 100 bp downward shift in interest rates?

What does a comprehensive ALM plan, as described in Chapter 3.2.5, require beyond a pure volume plan?

According to the EBA requirement cited in Chapter 3.3.1, what are the two key aspects institutions should consider when assessing the implications of optionality for IRRBB purposes?

Which of the following is NOT an example of a customer transaction requiring behavioral modeling mentioned in Chapter 3.3.1?

What does 'Holistic ALM', as defined in Chapter 3.4, encompass beyond narrow tactical functions?

What was the year JP Morgan Chase's spending on technology, including robotics and AI, reached USD 17 billion?

What is the key difference between a 'coupon floor' and an 'indicator floor' in a negative interest rate environment, as explained in Chapter 3.5.1?

What problem does the ISDA 2014 Collateral Agreement Negative Interest Protocol address, according to the notes in Chapter 3?

From an economic perspective, as described in Chapter 3.5.2, why does NIRP (Negative Interest Rate Policy) create frictions in a bank's funding mix?

What is one of the key challenges related to negative interest rates mentioned in Chapter 3.5.4?

What behavioral shift in bank customers was observed in 2022 and 2023 as interest rates rose, according to Chapter 3.6?

In what year did the ECB conduct a sensitivity analysis of banking books that highlighted banks' heavy reliance on models calibrated in a declining interest rate environment?

What is the expected behavior of customers with fixed-rate loans in a rapidly rising interest rate environment, according to Chapter 3.6?

What was the change in German MFIs' cash position as a percentage of their balance sheets from EoY 1999 to EoY 2021?

Which of the following factors is NOT listed in Chapter 3.1.2 as a potential explanation for regional differences in European banking?

When ALM is organized as a profit center, what happens to the profit generated within ALM?

What is the key political dimension of NII planning mentioned in Chapter 3.2?

In NII planning, what is the key characteristic of a 'forecast' as defined in Chapter 3.2.1?

According to the study by Cruz-García et al. (2019) referenced in Chapter 3.2.4, what is the estimated movement in bank interest margins for every 100 bp shift in short-term market interest rates?

In the context of behavioral economics (Chapter 3.3), why must a bank model the behavior of other banks, not just its own customers?

What is meant by 'rigid deposits' in the context of a negative interest rate environment as described in Chapter 3.5.2?

Which of the following scenarios describes a situation where a negative interest rate environment would cause potential losses for a bank, according to Chapter 3.5.1?

How did the balance sheet composition of German MFIs change with respect to bond issuance between EoY 1999 and EoY 2021?

What is the key difference between an international investment bank and a regional savings bank in terms of their ALM needs, according to Chapter 3.1.3?

What does the text suggest is a consequence of the 'psychology of planning' on NII projections?

In the context of Volume Planning (Chapter 3.2.3), the 'run-off' of existing business is a function of what two factors?

What is 'backtesting' in the context of behavioral assumptions, and why is it described as difficult in Chapter 3.3.2?

What percentage of its total workforce did Goldman Sachs employ as developers in 2020, as cited in Chapter 3.4?

In a negative interest rate scenario where a bank has an indicator floor on a loan (asset), what happens to the customer's interest rate if the indicator rate (e.g., EURIBOR) falls below 0 percent?

What does the German Federal Court of Justice's 2023 decision on negative loan interest rates, mentioned in Note 27, clarify about the legal definition of 'interest'?

How might a rapid rise in interest rates affect customers with floating-rate loans, according to the end of Chapter 3.6?

What does the text identify as a key reason for the heterogeneity of customer preferences for mortgage loans across Europe?

What is the defining characteristic of a 'profit center' ALM department according to Chapter 3.1.4?

What is the primary message regarding the use of overly complicated models in ALM, as mentioned at the end of Chapter 3.1.5?

What is the most widely expected interest rate environment scenario often used as the 'baseline scenario' in NII planning?

Which of these is NOT listed as an example of a behavioral modeling consideration for customer transactions in Chapter 3.3.1?

What does the text mean when it says a bank can gain a 'strategic advantage' through investments in holistic ALM?

In the period between EoY 2021 and EoY 2023, what happened to customer time deposits under one year in German MFIs?

What is the consequence for an ALM plan if forecasts of future liquidity risk and capital requirements are not considered?

What is the challenge presented by the transition from EURIBOR to risk-free rates (RFRs) for ALM models with interest rate floors?

What warning did the ECB's 2017 stress test provide to banks five years before the interest rate cycle turned in 2022?

Why might a bank be forced to fine-tune its hedging and investment strategies during a period of rapid interest rate rise?