Change of Market Data: Individual Estimations

Use Case

The reference rate decreases from 4.5% to 4.2% and further to 4.0% in the following year.

Calculation

You would now like to simulate the effects on the following balance sheet item:

Business figure	Account number	Amount
Liabilities to customers (due on demand)	20002	36,200.00

The balance sheet item ‘Liabilities to customers (due on demand)’ is to be adjusted according to individual estimations of the change in the reference rate.

The calculation can be called up using the Volume Change function in the Control File as follows:

CODE

[20002] + Volume change in relation to reference rate

Calculation Data

The following data is provided in order to carry out individual estimations regarding the change in the reference rate:

in sheet Input Files | FORECASTS

Parameter	Date	Value
Reference rate	31/12/2024	4.2%
Reference rate	31/12/2025	4.0%

in sheet Input Files | ESTIMATIONS_VOLUME

Parameter	Account number	Support point	Volume change
Volume change in relation to reference rate	20002	4.0%	5%
Volume change in relation to reference rate	20002	4.5%	0%

Result

calculation for 31/12/2024:

official forecast of the reference rate: 4.2%
linear interpolated value of the volume change: 3%
new values of the balance sheet item ‘Liabilities to customers (due on demand)’:
36,200.00 * (1 + 0.03) = 37,286.00

calculation for 31/12/2025:

official forecast of the reference rate: 4.0%
value of the volume change: 5%
new value of the balance sheet item ‘Liabilities to customers (due on demand)’:
37,286.00 * (1 + 0.05) = 39,150.30

Variant

The effects of the change in the reference rate should now also be transferred to the following balance sheet item:

Business figure	Account number	Amount
Liabilities to customers (with maturity)	20003	28,400.00

This balance sheet item is to be adjusted in accordance with individual estimations of the change in the reference rate in relation to the balance sheet item ‘Liabilities to customers (due on demand)’ – however, as the balance sheet item ‘Liabilities to customers (with maturity)’ only develops one year later with the market, the adjustments are to be simulated with a delay of one year.

In this case, the calculation can be called up using the Volume Change function in the Control File as follows:

CODE

[20003] + Volume change in relation to reference rate based on [20002] delayed by 1 year

This leads to the following results:

calculation for 31/12/2024:

No change in the value of the balance sheet item ‘Liabilities to customers (with maturity)’, as the change is only implemented with a delay of one year.

calculation for 31/12/2025:

official forecast of the reference rate for 31/12/2024: 4.2%
linear interpolated value of the volume change based on the business figure [20002]: 3%
new value of the balance sheet item ‘Liabilities to customers (due on demand)’:
28,400.00 * (1 + 0.03) = 29,252.00