ALM Toolkit · Vol. 1

EVE Sensitivity

A pedagogical tool to compute Economic Value of Equity sensitivity to interest rate shocks across maturity buckets. Built in 30 minutes with Claude.

Methodology Duration-based
EBA IRRBB-aligned
01 — Input

Balance sheet by bucket

Bucket Assets (€M) Liabilities (€M)
Total assets
Total liabilities
Net gap
Rate shock scenario

Pedagogical example. Real EVE computation requires full cash-flow modelling, optionality (prepayments, NMD behavioural models) and EBA SOT thresholds.

02 — Output

EVE impact

EVE baseline
at current rate curve
EVE shocked
ΔEVE absolute
€M change
ΔEVE / Tier 1
EBA SOT threshold: 15%
Bucket contribution waterfall
Positive
Negative
Net