CD Rate and CD Early Withdrawal Model Validation
- Financial Modeling
Prescio validated forecasting models for CD rates and CD early withdrawals used in Asset Liability Management (ALM) for a major regional bank. The models applied standard time series methodologies and were validated based on the latest banking regulations and industry standard methodologies. Multiple elements of the model development process were reviewed including the modeling framework and methodology, data, documentation, program code, and model governance. A challenger model was developed as a benchmark approach using advanced dynamic regression time series modeling techniques.