Comprehensive Asset/Liability Management (CALM) Tool Official Release (French Version)

Bringing a Structured Framework to Asset/Liability Management (ALM) in Microfinance

MFX Solutions is proud to officially release the French language v1.0 of its Comprehensive Asset/Liability Management (CALM) Tool to the microfinance industry. The CALM Tool has been developed as a long-range financial statement model for small banks and microfinance institutions to assist them in development and strengthening the ALM function within their institution. The CALM Tool is available for download and is being provided free of charge. For training and technical assistance related to the CALM Tool or ALM, please contact Kevin Fryatt, Director of Technical Assistance here.

ALM deals with the risks arising from financial intermediation and covers exposures related to portfolio quality, liquidity, capital adequacy, foreign exchange rates and market interest rate changes. The most important feature of the CALM Tool is that it can immediately quantify all key dimensions of risk for any current or future monthly closing within the five-year time horizon of the financial model. The tool assembles recent actuals and long-range forecasts of all lending, investing and funding activities along with the associated operating expenses into a detailed model of forward financial statements for your institution. Along with the income statement / balance sheet view, the model produces the corresponding ratios and risk schedules that quantify the exposures to portfolio credit risk, liquidity, capital adequacy, foreign exchange rate, and interest rate risks. A strategic plan can thus easily be examined in terms of prudential compliance, adherence to lender covenants, and observance of institutional risk policies.

You will find the CALM Tool useful in long range strategic planning as well as in preparing financial reporting and risk schedules on current accounting periods for senior management, the board, and major creditors of your institution. The CALM Tool is updated dynamically via formula links that are driven by a limited set of business variables and macroeconomic parameters that are entered up front. This makes the tool an ideal scenario engine within which you can quickly simulate alternative versions of your strategic plan including certain risk scenarios under adverse business conditions.

Other free decision support tools are also available for download on the MFX website. Both English and French language versions of the CALM Tool will be available for download from the MFX website in the near future.

Kevin Fryatt

Director of Technical Assistance

MFX Solutions

1050 17th St., NW

Suite 550

Washington DC, 20036, USA

(o) 202.684.9371

(m) 410.804.8328

(f) 202.280.1212

skype: kev-o-rama

www.mfxsolutions.com