The Future of ALM

According to Chapter 6, what is the definition of FinTech as provided by the Financial Stability Board (FSB)?

How has FinTech influenced the behavior of retail bank customers, according to the text?

What is the primary challenge for ALM in response to customers adopting FinTech innovations, especially concerning non-maturity deposits (NMDs)?

What is the estimated amount of wealth expected to be transferred between generations in the U.S., highlighting the need for banks to adapt to younger customers?

What does Decentralized Finance (DeFi) aim to do, as described in the chapter?

What is the primary challenge for ALM and risk management when dealing with DeFi-based instruments?

How could a bank using blockchain-based deposit tokens and smart contracts face a different type of risk for its non-maturity deposits (NMDs)?

What is the EBA's definition of Big Data, as cited in Chapter 6?

According to the text, what is a primary benefit of using big data analytics and machine learning in ALM?

What significant issue related to the use of AI and machine learning in ALM is highlighted by the FSB and requires careful model governance?

Which of the following is NOT listed as a transition channel through which climate risk impacts banks’ earnings and capital?

How is the Funds Transfer Pricing (FTP) process likely to incorporate climate risk management in the future?

What was a key finding of the ECB’s 2022 climate risk stress test?

A common approach to behavioral modeling in ALM is to segment a bank's customer pool into more granular buckets. Which of the following is NOT listed by Soulellis (2017) as a key differentiator for modeling deposit balance behavior?

What event has recently added a 'sense of urgency' for regulators and supervisors to focus on the behavioral aspects of banks' IRRBB and ALM?

According to the text, which of the following is NOT one of the four key areas where innovation and environmental changes are affecting the future of ALM?

What is the key difference between how Baby Boomers and Millennials/Generation Z trust FinTech with their personal financial data?

What is Distributed Ledger Technology (DLT)?

The text defines 'Advanced Analytics' as techniques that include predictive and prescriptive analytics, often using what specific technologies?

What is 'model herding' in the context of machine learning models in ALM?

What is 'greenwashing' as mentioned in the context of climate risk management?

Which of the following describes the 'investment channel' of climate risk impact?

What does the ECB expect banks to do with climate-related risk drivers regarding their internal models?

After segmenting a customer base for behavioral modeling, what is the necessary ongoing process for the models?

What is the estimated global private sector investment in AI that Goldman Sachs forecasts will be approached by 2025?

How might AI systems act in the future of banking supervision, according to Araujo et al. (2024)?

Which of the following historical innovations is mentioned as an example of past 'FinTech'?

What does the text suggest is the main problem for banks that stubbornly cling to old business models and do not innovate?

What is the primary function of a 'smart contract' in the context of the tokenized deposit example?

What are 'Deep ALM', 'Deep Hedging', and 'Deep Treasury' examples of?

What does the FSB suggest that firms might do to handle the 'black box' problem of some AI models?

What is the overall goal of the Paris Agreement, which is relevant to climate risk management?

Which of the following is an example of a key differentiator for segmenting customers in behavioral modeling, according to the text?

The text states that in the future of ALM, it is prudent to reflect the evolving preferences of 'digital natives'. Who are considered 'digital natives'?

What is a potential downside of constructing a risk-free curve from repo rates for ALM purposes?

How might regulators use big data analytics and AI in the future, according to the text?

What is the primary reason that building a risk-free yield curve from government bonds is more straightforward in the U.S. than in Europe?

What is the primary focus of behavioral modeling in ALM?

Why must banks rethink their ALM frameworks for non-maturity deposits (NMDs) in the age of FinTech?

What is the role of a Crypto-Asset Service Provider (CASP) as mentioned in the context of digital assets?

Which of the following is identified as a risk when using machine learning models in finance, alongside model herding and procyclicality?

What is the key expectation for banks regarding climate risk according to the ECB's General Principles on Climate and Environmental Risk?

According to the text, what is one of the main components of Big Data and Advanced Analytics (BD&AA) tools that are beginning to replace basic ALM techniques?

What does the text suggest is a naive assumption for a bank to make if it were to issue tokenized deposits?

The text states that in today's environment, banks must adapt quickly to changing customer behavior. What have some banks begun to incorporate into their risk management to achieve this?

What is the core idea of 'relationship banking' as contrasted with the more 'transactional' behavior enabled by FinTech?

According to the text, why can the use of a EURIBOR-based interest rate swap curve as a proxy for the risk-free yield curve be problematic?

What does footnote 31 on page 174 highlight as a source of institutional vulnerability, revealed by events like the SVB collapse?

What type of data is NOT included in the EBA's definition of Big Data sources?

How could 'Deep Learning' be applied in Asset-Liability-Management according to Krabichler and Teichmann (2024)?