Olson Research Associates Inc. has introduced new versions of its Financial Planning Model software package and its Regulatory Analysis Model.
As with previous versions, the new Financial Planning Model 5.0 is designed to help bankers do portfolio analysis for asset/liability management, budgeting, and strategic planning.
This new version comes with improved compliance features, said Olson, which is based in Columbia, Md.
The overall chart of accounts, for example, has been redesigned to comply with FAS 115, a new regulation mandating that banks classify securities into three categories: trading account, held-to-maturity, and available-for-sale.
Market-Value Feature
The model also has improved forecasting capabilities and now comes with the ability to produce a future balance sheet that incorporates a mark-to-market calculation of any available-for-sale security.
In addition, the model reflects the necessary adjustment to capital equity and can test the bank's internal forecast using a Monte Carlo simulation.
The product has also been designed to perform the reporting required under FDICIA 305, a new regulation that requires bankers to measure interest rate risk. The model calculates the impact of changes in interest rate on a bank's capital.
New Forecasting Feature
Olson's new regulatory analysis product is an upgrade of a 1992 version that is also designed to help banks comply with a range of regulations including FAS 115, and FDICIA 305.
The 1994 program comes with a new forecasting feature that enables bankers to simulate net income and capital.
The model lets bankers see the impact of changes in the interest rates of the market values of securities for sale and to calculate a byperiod change in present value on any security classified as mark-to-market.
In addition, bankers can apply discount rates at the instrument level when calculating present value cash flows. The 1994 software program also produces the required reporting schedule for FDICIA 305 in a format suggested by the regulators.
Ms. Sullivan is a freelance writer based in New York.
