Loan Betas: A Key ALM Assumption for NIM as Rates Rise
Abrigo
JUNE 30, 2022
What Are the Loan Betas in Your Plan for Rising Interest Rates? Loan betas, or how rates for new and repriced loans will act as interest rates rise, are critical ALM inputs for NIM forecasts. . You might also like this webinar, "Banking in a Rising Rate Environment: Myth Busters Panel." WATCH . Takeaway 1 In prior rising-rate environments, inaccurate loan betas have led to net interest margin gains falling short of ALM model projections.
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