Alquid Announces New Release Strengthening Integrated Balance Sheet Management Capabilities, enhancing the way financial institutions integrate profitability forecasting and capital planning.

The latest version of Alquid introduces a series of functional innovations that enable banks to achieve a deeper, more precise understanding of their balance sheet dynamics and forward-looking capital metrics

With this new release Alquid enables the combination of more accurate financial projections, fully integrated capital planning, and enhanced stress-testing functionality, making Alquid a strategic platform for banks aiming to achieve more agile, resilient, and forward-looking balance sheet management. 

1. Enhanced P&L Projection for Non-NII Income

The platform now incorporates advanced accrual logic for transactional fees and commissions, allowing recognition at inception, maturity, or on an accrual basis. This upgrade materially improves revenue forecast accuracy and strengthens forward-looking capital performance metrics such as ROE, ROTE, and RAROC.

2. Integrated Capital Planning and RWA Projection

Alquid now enables granular assignment of RWA at product level within the planning process, delivering a fully integrated view of projected balance sheet positions, P&L evolution, and regulatory capital needs.

Institutions can flexibly apply standardized or IRB-based methodologies—including the loading of PD, LGD, and EAD parameters—directly within planning nodes, ensuring regulatory alignment while maintaining modelling flexibility.

3. Scenario-Driven CET1 Analysis and Capital Instrument Optimisation

Through multi-scenario simulation, banks can now identify the specific conditions under which CET1 ratios may require capital reinforcement and determine the optimal capital instruments (Tier 1, Tier 2, etc.) to address those needs.

4. Advanced Credit Risk Stress Testing

The release also enhances credit-risk stress testing capabilities, enabling institutions to adjust credit risk parameters based on macroeconomic scenarios and quantify their impact on future capital requirements with precision. This functionality helps banks anticipate adverse movements in portfolio risk and plan capital buffers more effectively.

5. A Major Step Toward True Balance Sheet Integration

With these enhancements, Alquid continues to build on its mission to provide banks with a fully integrated balance sheet management environment—bridging forecasting, profitability, capital management, and stress testing within a single, coherent platform.