Service Helps Banks Comply with Market-Value Rules

Article excerpt

The sea change in financial management faced by bankers has prompted four companies to offer a new four-part service. The shift from emphasis on simple gap management to measurement of interest-rate risk, combined with the use of more sophisticated securities by banks requires better financial management and analysis tools, according to Con Rusling, president of Sheshunoff Information Services Co.

In addition, banks face the need to value certain assets for compliance with Financial Accounting Standard 115 (market-value accounting for investments), FAS 107 (supplemental disclosure of the fair value of a bank's balance sheet), and other related rules.

The new service is called Sheshunoff Market Valuation Service. It addresses both basic regulatory and accounting requirements and the need for advanced simulation analysis.

In addition to Sheshunoff Information Services, a major supplier of bank performance data and analysis, the other companies involved are: Asset Backed Securities Group, Trepp & Company, and RAF Financial Corp. Asset Backed Securities Group provides analytical software and data for structured securities. RAF Financial specializes in interest-rate risk management. Trepp & Company is an asset-backed financing specialist.

The four parts of the service--all marketed under the Sheshunoff name-- may be purchased separately or in various combinations. The first part, called the Market Volatility Report, helps banks comply with FAS 115 and FDICIA 305. …