Asset & Liability Management

The course will be highly interactive building on the experience of course participants. ALM concepts  will be clearly explained and their practical implementation will be highlighted. Participants are encouraged to share the ALM challenges which their organisation faces and these will be explored. Excel models will be developed to demonstrate how ALM risks materialise and how these risks can be measured and mitigated. Case studies will be used to show ALM issues in practice

• Understand the role of ALM
• Measure the liquidity risk of bank liabilities
• Examine the regulations governing ALM issues
• Understand how ALM can contribute to maximising bank ROE
• Develop strategies to manage ALM risks

At the end of this Asset & Liability Management training course, you will have learned to

• Measure the stability of deposits
• Assess the risk to a bank’s net interest margin (NIM)
• Implement a funds transfer pricing (FTP) policy
• Develop a hedging strategy for a bank’s strategic investment portfolio
• Devise an internal liquidity adequacy assessment process (ILAAP)

The current, more volatile interest rate environment presents ever greater risk to bank profitability.  Knowing how to deal with this demands an understanding of the tools of ALM.

This Gulf Rowad Asset & Liability Management training course is suitable to a wide range of professionals but will greatly benefit:

• Bank treasury and finance staff
• Bank risk management and compliance staff
• Central bankers in charge of bank supervision
• Bank auditors
• Consultants and lawyers

Organisational Impact

Employees attending this Asset & Liability Management training course will be better able to manage the bank’s ALM challenges:

• Understand ALM risks
• Assess the stability of the bank’s funding
• Develop strategies to target appropriate funding sources
• Implement hedging strategies to contain interest rate exposures within the bank’s risk appetite
• Engage with the bank’s regulators and address their concerns
• Devise bank ALM policy

Personal Impact

This Asset & Liability Management training course is intended to transform participants’ ability to contribute to the ALM process in a bank:

• Appreciate the risks attaching to maturity intermediation
• Measure the behavioural maturity of bank assets and liabilities
• Understand the effect of a deposit guarantee on depositor behaviour
• Measure the sensitivity of assets and liabilities to interest rate movements
• Contribute to the development of a bank’s ILAAP and contingency funding plan (CFP)
• Present to the asset liability committee (ALCO) on ALM strategy