Your partners at Superior Consulting realize that the community bank is under siege from an unprecedented volume of new regulation, ever increasing competition, thin profit margins, and an unusually hostile regulatory environment. Our singular mission is to provide you with Guidance You Can Trust during these troubled times in order to ensure your institution does not become yet another statistical casualty of this environment.
Due to the increasing complexity of financial markets and greater volatility of interest rate environments within recent years, effective management of interest rate risk is a significant emerging challenge for many community banks. This increased complexity has prompted many community banks to adopt more sophisticated interest rate risk models and forecasts. One substantial regulatory requirement that has emerged from this increased sophistication is the regular evaluation of the accuracy and reliability of these risk forecasting models. In response to this new challenge, Superior Consulting developed our interest rate risk review services, which is designed to evaluate the effectiveness of these interest rate risk models through assessment of model assumptions and back-testing of model forecasts. This review is conducted in accordance with the guidance contained in the Joint Interagency Policy Statement on Interest Rate Risk, as well as regulatory guidance provided by your specific federal regulator.