Walk the ALCO rate-shock decision
Use asset-liability management logic to distinguish margin pressure, liquidity pressure, and structural rate risk.
ALCO pressure Commercial deposits are leaving for higher rates. The loan book is mostly fixed or slow to reset. The team wants one fast answer. Interest-rate risk and liquidity risk can look like one problem in a meeting, but they need different levers. ALM lens Repricing gap -> Behavior -> Optionality -> Action Rate changes affect banks through timing, customer behavior, embedded options, and balance-sheet choices. Shortcut Move one headline rate The decision targets the actual constraint. Do not use a future production lever to pretend you solved an existing book mismatch. 01 Diagnose 02 Segment 03 Act What moved?…
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