Data Services Introducing BALSA
BALSA - the Balance sheet And Liquidity Stress Analysis system, was designed by Treasurers for Treasurers. It was our experience that organisations often found it impossible to agree how best to impact their strategic liquidity position if they could not agree their current liquidity position. We decided to develop a system that would produce quantitative data to help an organisation understand its current liquidity profile.
Our approach is to achieve this through the use of peer data. We found that this was best format to end the subjective and often emotional debate about the extant liquidity of any bank. Once the starting position, relative to a peer frame of reference, is understood, an institution can begin the process, after research and iteration, of agreeing a desired liquidity outcome. Once a desired profile is agreed, long-term funding initiatives and balance sheet targets/limits become relatively straightforward to implement as they are based on quantitative objectives.
BALSA can assist financial institutions with managing their strategic liquidity risk position. BALSA enables an institution to stress test its liquidity position through the use of multiple scenarios...