Interest Rate Risk Grader Tool for Bank Analysis Announced by Echo Partners

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Interest Rate Risk Grader Measures and Quantifies Bank Sensitivity to Interest Rate Changes.

“With interest rates poised to rise from historic lows, the ability to measure bank interest rate risk has never been more important. Our Interest Rate Risk Grader simplifies the process of evaluating interest rate risk.”

Echo Partners has announced the Interest Rate Risk Grader(echopartners.com/interest-rate-risk-grader/) addition to its asset liability tools to allow users to evaluate bank risk and sensitivity to interest rate changes.

Bank profitability is an ever-changing balance between deposit costs, loan rates, and investment yields. Yet, typical bank analysis is static, focusing only on historical results. Interest Rate Risk Grader provides the tools to make the leap to dynamic forward looking analysis based upon anticipated future changes in interest rates.

Interest Rate Risk Grader tracks key risk measures that forecast changes in bank funding, short term profitability, and long term value including cumulative gap, earnings at risk, and economic value of equity. Sophisticated banking techniques for interest rate risk measurement(echopartners.com/interest-rate-risk-grader/interest-rate-risk-measurement/) are used to provide a complete professional risk assessment.

Interest Rate Risk Grader distills arcane quantitative tools into a single numeric score, which is directly comparable between and among banks. And, for at-a-glance awareness, a simple green, yellow and red color code quickly denotes relative rank and risk.

The top rated banks, earning the highest possible score of 100, are shown on the Interest Rate Risk Honor Roll(echopartners.com/interest-rate-risk-grader/interest-rate-risk-honor-roll/). Out of 7,104 banks graded nationwide, only 191 banks rated "100", the highest possible score. These banks had the least organic interest rate risk, as measured by our proprietary Interest Rate Risk Grader system.

Quote, Attributable to Howard Lothrop, Managing Director and Founder, Echo Partners

“With interest rates poised to rise from historic lows, the ability to quickly and accurately measure bank interest rate risk has never been more important. Our Interest Rate Risk Grader simplifies the process of evaluating interest rate risk, and its impact on bank profitability and safety.”

About Echo Partners
Echo Partners is a nationwide bank asset liability consulting firm specializing in applying modern tools to hedging interest rate risk. Echo Partners focuses exclusively on the community bank sector, offering asset liability, hedging, and pricing tools to help build bank profitability. Based in Cordova, TN, Echo Partners can be found at http://www.echopartners.com.

Contact
Please contact Howard J. Lothrop, CFA, Managing Director and Founder of Echo Partners directly at 800-971-1378 x 201 or at howard.lothrop(at)echopartners.com for additional information.

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Howard Lothrop
Echo Partners
800-971-1378 ext. 201
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