Asset And Liability Management (ALM International)

Overview

This course is designed to give bankers a comprehensive framework of the challenges of bank Asset and Liability Management and how to leverage good ALM practices to integrate into other bank management activities, such as sales and marketing, management accounting, product management and pricing and other activities such as audit, budgeting etc.

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Outcome

Quantify the implicit and explicit risks underwritten by the banks through there commercial activities as well as through their proprietary trading and investment activities. The focus is on Interest Rate on the Banking Book (IRRBB) and Liquidity Risks.

Define risk management techniques and strategies.

Discuss ALM reporting for internal management purposes and for compliance reporting (Basel 3 and projected Basel 4).

Understand how to maximize the performance of the bank under asset and liability risk management constraint and risk appetite

Details

Developed by: Beacon FinTrain
Standard Total Hours: 24 Hrs
Language: English - Bilingual "English & Arabic"
Modalities: 
Next Rounds: 
Date Tenure Modality Venue
19 Nov 3 Days Face To Face Degla Plaza, Beacon Premises
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Outline

The role and responsibilities of ALM
The ALM performance targets, risk appetite and strategies
The ALM compliance constraints
The ALM reporting process
Asset Liability Management principals

Market analysis and Bank balance sheet analysis
Preparation of the bank’s risk policy, its risk limits (liquidity and interest rate risks) and development of the risk management recommendations (what, how and how much?)
Development of adapted ALCO 1 strategy recommendations presentation to the board of directors of ALCO decisions

Interest Rate Risk valuation models
Repricing gap analysis (profitability sensitivity models)
Maturity and Duration gap
analysis (the value sensitivity models)
Non-maturity contracts
value sensitivities: statistical and probabilistic approach
Value at Risk definition and principals
VaR calculation methodologies
Policies, limits, and performance metrics
Rate management
Market, arm’s length reference rates
On and off-balance sheet strategies
Variance and covariance analytics and risk portfolio optimisation strategies and metrics

a.Interest rate risk analysis (repricing maturity gap and Duration gap)
b.Development of ALCO 2 recommendations to maximise the banks value through effective IRRBB management

The Liquidity Risk valuation models
Maturity gap analysis
Ratio analysis; LCR & NSFR versus other ratios
Liquidity Risk Management
Liquidity cushions
Off-balance sheet solutions
Liquidity Plan

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Who Should Attend

  • The course applies to all bank managers who need to understand the impact of ALM to their strategies and performance. ALM training will focus on understanding the risk valuation models and how these influence the banks activities (profitability
  • equity constraints
  • product management). This training is important for bankers that wish to follow other risk and management related trainings such as Fund Transfer Pricing (FTP). No previous ALM or risk management competencies are needed
  • but good existing general banking competencies are required: Executive
  • general
  • and senior managers Finance teams specially Management Accounting officers Business unit managers and heads of regional businesses and branches Enterprise Risk Managers (ERM) including credit risk and compliance managers Product Managers and Marketing managers.

Why Beacon

Quality

Beacon FinTrain prioritizes excellence in every service, ensuring top-notch, reliable, and consistent outcomes that meet and exceed client expectations.

Specialization

We focus on finance, offering expert knowledge and bespoke solutions that cater to the unique needs of finance professionals in the Middle East and Africa.

Punctuality

Time is money. We respect deadlines, delivering precise and timely results to help our clients stay ahead in the fast-paced financial world.

Guidance

Beacon FinTrain is a guiding light in finance, providing insightful advice and support to navigate the complexities of financial markets and regulations.

Integrity

We uphold the highest ethical standards, fostering trust and transparency in all our dealings to build lasting relationships with clients.

Flexibility

Adapting to the dynamic finance sector, we offer versatile services and solutions that align with the evolving needs of our clients.