Decay Tables
The page allows you to create sets of date- and model-specific decay assumptions for non-maturity deposit accounts.
In the Chart of Accounts, applying a table to a detail account creates a decay schedule that causes portions of the account balance to mature in future time frames.
Decay tables are a time-saving alternative to setting up manual decay speeds on the Risk panel of Chart of Accounts. When multiple accounts are associated with a single decay table or category, future modifications can be made in one place.
Choose the appropriate page to add new or show existing tables:
- Basic Tables - Use this option to show each table as a row in a grid. You can select the decay method to use and define the rate shock scenarios and speeds. The decay speeds you enter tell the model how the decay percent changes in different offering rate shock scenarios.
- Advanced Tables - Use this option for a flexible way to set up decay speeds for your accounts. Rate scenarios are defined for custom categories, which can contain up to 30 annual or 120 monthly time frames.
You can generate reports showing how your basic or advanced decay tables and categories are set up by exporting the information to a file. You can also refer to the Chart Documentation report for the Risk panel to see which accounts are using decay tables.
What If Models
Decay tables are model-specific. When you select a What If model, the following behaviors occur based on the page that you have opened:
- On the Basic Tables page, the basic decay tables appear in the grid.
- On the Advanced Tables page, the first advanced category, if any exist, appears in the grid.
Any new tables or categories you create belong to the selected model. When you create a new What If model, the decay tables from the source model are copied to the new model so that both models have identical information for all shared months.
Decay Months
For What If models with floating time frames, the default month on this page is always the application's current month. When the current month moves forward, as part of the monthly update process, existing decay speeds are saved for the month that is now part of history and is automatically copied into the new month. If you change the date to a historical month, then you can view historical decay speeds if they exist, but you cannot edit them.
If a What If model's starting month is changed to a fixed historical time frame, then the decay month for the affected decay tables changes with it. When this change occurs, the application uses the rates (if any) from that historical starting month.