This Asset & Liability Management training course teaches you how to effectively manage your ALM function, balance sheet and profitability for your organisation.

Here are some key benefits from attending this Asset & Liability Management training course:

• NEW: ALM Simulation Game which is performed on the final day of the course. You will apply the knowledge gained in the course to optimize a bank’s ALM situation. (*Not available in the online version)
• Understand the dynamics of your balance sheet and how to use KPIs
• Identify the key risk factors acting on your balance sheet and how they can be minimized
• How all forms of financial exposure can be defined, measured, monitored and managed
• Benchmark your current ALM practices and develop an action plan to bring your practices to the highest standard
• Adopt effective cash flow management and Value at Risk (VAR) techniques
• How to manage and hedge interest rate and liquidity exposures
• Enhance your capital adequacy planning and balance sheet management
  techniques
• Up-to-Date Techniques and Strategies
• Regulatory Capital Rules
• We give you a framework to assess/write your own internal ALM policy.
• You’re given several practical ALM tools
• Simple, Clear and Practical

ONLINE COURSE SYLLABUS

• What is ALM
• ALCP and Country ALCO
• Challenges for ALM Today

• ALM Governance
• ALM Structure at Major Banks

• Capital and Value Creation
• Current Economic Environment

• Interest Rate Cycle and What Yield Curves Tell Us
• LIBOR and Risks in Floating Rates
• Building Block of Managing Interest Rate Risk: FRA’s

• Fundamentals of Short Term IR Futures
• The New Derivatives Architecture

• Bonds and Price/Yield Relationship
• Calculating Bond Prices
• Bond Duration and Convexity
• Bond Portfolio Theory

• What is an interest-rate swap?
• BIS OTC Derivatives Statistics
• Managing Bond Price Risks with IRS
• OIS

• Uses of Long Dated Currency Swaps
• Liability Management and Long Dated Currency Swaps
• Structuring the Swap to Match the Liability

• Net Interest Income and Market Value of Equity
• Gap and NII
• Gap Metrics and Limits
• MVE

• FX Forward and Swap Terminology and Quotations
• Pricing FX Forwards
• Case Study: Generating USD Funding Through JPY Using FX Swaps

• What is FTP?
• Best Practices for FTP

• The Role of Bank Capital
• Regulat Capital – Basel III

• Credit Risk Weighting for RWA Under Basel
• Credit Loss Modeling Fundamentals
• Credit Spreads and Credit Default Swaps

• Market Risk and the Trading Book
• Operational Risk and Proposed Changes in Basel

• Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR)
• Leverage Ratio
• New Capital Instruments

Asset & Liability Management Course Highlights

WHAT IS ASSET LIABILITY MANAGEMENT

• Definition of ALM
• ALM and Challenges Today
• ALM Framework
• ALM Structure at Major Banks – a sample
• Capital and Value Creation
• Indentifying Risks for ALM
• Impact of the External Operating Environment on ALM

ALM GOVERNANCE

• ALCO Function and Structure
• Importance of Policies and Procedures
• Role of Audit and Risk Management

SHORT TERM INTEREST RATE RISK ANALYSIS AND RISK MANAGEMENT PRODUCTS

• How to interpret the yield curve
• Managing Floating Rate Exposure
• Exercises and Case Studies: Managing Interest Rate Risk with FRAs

LONG TERM INTEREST RATE ANALYSIS AND RISK MANAGEMENT PRODUCTS

• Fixed Income Markets
• Exercises and Case Studies: Duration, Bond Portfolio Analysis, and how to calculate VaR with a discussion of expected loss approach
• Interest Rate Derivatives
• Exercises and Case Studies: Hedging Interest Risk in Long Term Interest Rate Exposures, Asset Swaps

GAPPING AND GAP ANALYSIS

• What is the ‘gap’?

ACCOUNTING CONSIDERATIONS FOR ALM

• Trading Book Assets and Liabilities
• Investment Book Assets and Liabilities
• Banking Book Assets and Liabilities
• Hedge accounting for risk management derivative products
• Earnings impact and accounting treatment

FAIR VALUE MEASUREMENT

• Valuation higherarchy
• XVA – the valuation adjustments: CVA, DVA, FVA etc.

FOREIGN EXCHANGE MARKET AND FUNDING TECHNIQUES

• FX pricing and electronic markets
• Forward FX markets and linkages to interest rates
• Exercises and Case Studies: Sourcing alternative funding through the FX market

CAPITAL AND BASEL III

• Credit Risk management and ALM
• Market Risk and ALM
• Operational Risk
• The BIS Leverage Ratio        

LIQUDITY, FUNDING GENERATION AND FUNDS TRANSFER PRICING (FTP)

• Objectives of FTP
• Setting up and managing an FTP system
• Centralizing Treasury liquidity
• Econometric modeling of Deposits
• Structured Deposits
• Exercises and Case Studies: Indeterminate Maturity deposits and FTP
• New Liquidity and Leverage Regulations under Basel III
• Exercises and Case Studies: Calculating the LCR
• New Capital Instruments 

NEW: ALM SIMULATION

• In the final section of the course, using all the knowledge gained over the preceding modules, you will work on a multi-dimensional ALM simulation case involving a bank facing challenges on all sorts of measures.
• Working in teams, this simulation requires managing the balance sheet for such issues as EaR, ROE, LCR, NSFR and more in a fully integrated manner just as the ALCO and Treasurer of a bank would have to do.
• *Calculators are required for the simulation.
• **ALM Simulation is NOT included in the online distance learning version

“This was a comprehensive and very useful course on the subject, made even more interesting by the references to real situations.

I did not expect to understand so much! Credit goes to the presenter! Overall the course exceeded my expectations as there was also an emphasis on increasing and maintaining profitability.” – S.M., Senior Director-Financial Institutions Group, American Express Bank, Germany

“Good examples, clear presentation – Suhnylla appears very knowledgeable and can offer prior experience, very passionate about the subject matter. Infectious!” – O.R., Khazanah Nasional Bhd, Malaysia

“Speaker is very well-versed in the topic and is able to bring the banking side of the biz and relate to the corporate side.” – N.K., BOC Aviation, Singapore

“What I liked most about this training course was the knowledge of the instructor.” – A.A., Saudi Aramco, Saudi Arabia

“It cleared a lot of issues pertaining to the company’s ALM.” – A.K., Qipco, Qatar

“It is a very good course…” – G.M., Financial Controller, HSBC Bank, Oman

“The contents were very useful…” – A.S., AGM-Development Banking, Seylan Bank, Sri Lanka

“Interesting. Able to link the financial material on paper with what the world around is doing. Especially on why crisis happen.” – T.M.H., UOB Bank, Singapore

“I found the speaker to be very knowledgeable and credible, with a lot of experience in the subject that can be shared to the audience.” – S.A., PT Indonesia Infrastructure Finance

“Speaker adjusted content and pace of the course to suit/match participants interest and knowledge level. Lots of “real life” examples…What I liked most about this training was: the ability of the speaker to relate back to the real life situations faced by the participants; Speaker’s ability to explain abstract concepts in ‘everyday language.’” – D.S., CEO, RBS