Non-Maturity Deposits (NMD) – Survival & Liquidity Forecasting

Non-Maturity Deposits (NMD Platform)

Survival & Liquidity Forecasting

A bank-focused SaaS application for modelling non-maturity deposits using transparent behavioural logic, regulatory-style stability caps, and controlled shock scenarios.

Designed for Treasury, Liquidity, and Balance Sheet teams that require defensible NMD assumptions and audit-ready outputs.

What the NMD Platform Supports

The NMD Platform supports banks and regulated institutions in:

Estimating behavioural stability of retail and wholesale NMD balances
Applying segment-based stability caps consistent with supervisory practice
Assessing the impact of a one-month interest-rate shock
Producing structured Excel and Word outputs suitable for management, ALCO, Risk, and Internal Audit

The platform replaces ad-hoc spreadsheet processes with a repeatable, documented workflow that can be reviewed, explained, and reused.

Who It’s For

The NMD Platform is designed primarily for:

Banks and Islamic banks (Treasury, Liquidity, ALM, Finance)
Regulated financial institutions with material NMD portfolios
Risk and Finance teams supporting internal or regulatory reporting
CFO / CRO / ALCO support teams requiring fast, transparent “what-if” views

It fits best where institutions already hold NMD balances and need to convert them into structured stability assumptions and impact analysis without building an internal engine from scratch.

Key Capabilities

1. Behavioral Stability & Regulatory-Style Caps

Distinguishes retail and wholesale NMD segments
Applies configurable stability caps (typical reference logic):
- Retail: capped at 90%
- Wholesale: capped at 70%
Displays both raw behavioural stability and capped stability, enabling clear explanation of adjustments

2. One-Month Shock Scenario

Simulates a one-month interest-rate shock (e.g. +100bps, +300bps)
Applies the shock only to the first forecast month, reverting to the base path thereafter
Highlights incremental impact over the shock period
Designed as a transparent stress overlay, not a black-box stress model

3. Practical Horizon Guidance

Embeds commonly observed behavioural horizon guidance, such as:
- Retail NMDs: typically up to 5 years
- Wholesale NMDs: typically up to 2 years
Guidance can be adjusted to reflect the institution’s own framework

The platform supports discipline without dictating policy.

4. Structured Excel & Word Outputs

Excel outputs: detailed tables covering stability, caps, run-off, and base vs shock paths
Word outputs: narrative-style reports including
- stability assumptions and caps
- key findings
- shock impact highlights
- interpretation notes for ALCO and management

Outputs are designed to be printable, shareable, and reviewable, not just system screenshots.

Governance, Risk & Supervisory Use

Non-maturity deposit modelling directly supports liquidity governance, interest-rate risk oversight, and balance-sheet resilience.

The NMD Platform is designed for controlled model use within Treasury, ALM, and Risk functions:

All assumptions, caps, horizons, and shock inputs are explicitly documented
Each run is reviewable and traceable
Outputs support internal governance, model oversight, and supervisory discussion

The objective is not only forecasting accuracy, but institutional defensibility.

How the Platform Is Typically Used

Upload NMD Data
Standard Excel or CSV format with basic fields (date, segment, balance, currency).
Set Assumptions & Shock Parameters
Define caps, shock size, and horizon guidance as appropriate.
Run Analysis
Base and shocked paths are calculated with full transparency.
Export Outputs
Excel for analysis; Word for governance, ALCO, or documentation use.

Typical Use Cases

Liquidity or NMD stability review ahead of internal or supervisory discussions
Refinement of NMD assumptions for stress testing and scenario analysis
Supporting documentation for ALCO and balance-sheet committees
Replacing spreadsheet-based processes with a structured, repeatable approach

Regulatory & Model-Risk Disclosure

The NMD Platform is not positioned as a regulator-approved model.

It is an internal support tool that:

Documents NMD stability logic
Makes caps and horizons explicit
Produces repeatable, versioned outputs
Can be embedded into internal governance and policy frameworks

Institutions remain responsible for final calibration, assumptions, and regulatory communication.

NMD Premium

An extended version of the NMD Platform is available for institutions requiring deeper scenario analysis, enhanced reporting, and expanded governance narratives.

→ View NMD Premium