balance-sheet-optimization

What problem does it solve?

This Skill addresses the complex challenge of optimizing a bank's balance sheet to simultaneously maximize profitability, ensure regulatory compliance, and maintain robust liquidity.

Core Features & Use Cases

• Efficiency Dashboard: Provides key metrics on ROAA, ROAE, RoRWA, NIM, RWA density, CET1, LCR, and NSFR.
• Product Economics: Analyzes FTP-adjusted profitability and capital efficiency of individual products.
• RWA Optimization: Identifies opportunities to reduce regulatory capital requirements through portfolio rebalancing and risk mitigation.
• HQLA Portfolio Optimization: Maximizes yield on High-Quality Liquid Assets within LCR constraints.
• Funding Mix Evaluation: Assesses optimal liability structure for cost and stability.
• Scenario Planning: Develops strategic scenarios (Return Max, Capital Eff, Liquidity, Balanced).
• Use Case: A bank's ALCO committee needs to decide on strategic asset allocation for the next fiscal year. This Skill can analyze the current balance sheet, identify opportunities for RWA reduction, optimize the HQLA portfolio for better yield, and recommend a funding mix that balances cost and stability, presenting these findings across different strategic scenarios.

Quick Start

Use the balance-sheet-optimization skill to generate a balance sheet efficiency dashboard and identify RWA optimization opportunities based on the provided financial data.