The Funding Model is a Bank product designed to help members analyze match-funding strategies that incorporate Bank advances. Members access the Funding Model online through SecureConnect to create funding scenarios and test them against changing interest rate environments. The model illustrates the risks and rewards of different funding decisions based on a given set of characteristics.

The Funding Model provides members with information on revenue, funding costs, spreads, durations, and pro forma ROA/ROE. The model also provides analysis on the changes to these numbers, based on various parallel interest rate shocks (+/- 100/200/300 basis points).

This is an excellent tool to help the decision-making process on loans and investments. The Bank’s lending staff can help analyze the results to determine if potential transactions meet the member’s required rate of return. And, the results can be used in documentation provided to boards, examiners, and auditors.
 

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