Collaboration with ALM Partners consultants gave us good insight on how to improve the modelling of interest rate risk in the banking book and governance processes.
Avanza was founded 1999 and has since then grown from being a small, online stock broker to becoming Sweden’s leading platform for savings and investments. Avanza is challenging the larger banks and insurance companies on the Swedish savings market, which still has considerable growth potential.
Avanza has a banking license and is therefore under the supervision of the FSA. In order to stay compliant, under increasing regulatory requirements, Avanza decided to evaluate their IRRBB-model. As ALM Partners has extensive knowledge in modelling the banking book and interest rate risk arising from it, a collaboration between ALM Partners and Avanza was agreed upon.
ALM Partners consultants evaluated Avanza’s IRRBB-model in close co-operation with Avanza’s treasury team. After the on-site work in Stockholm, a written paper with improvement recommendations was given to Avanza.
The overall evaluation process took about a month, and according to Oliver Lippman (Head of Treasury) the collaboration with ALM Partners consultants gave good insight on how to improve the modelling of interest rate risk in the banking book and their governance processes.
We are looking forward to a great journey together!
– Oliver Lippman, Head of Treasury, Avanza
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