Report

Challenges of Non-Maturing Deposit Modeling During a Global Saving Glut

We are living through an economically historic time across global markets. One pressing matter is the global saving glut and the impact on ALM and Liquidity Risk. Ongoing for a decade, the pandemic deepened this phenomenon and disrupted non-maturing deposit (NMD) models. This research paper explores impacts on interest rate risk, liquidity risk and Funds Transfer Pricing (FTP), and what the rapidly changing interest rate environment could mean against this backdrop.