How to Increase and Maintain Profitability Through Up-to-Date and Practical Asset & Liability Management Techniques and Strategies
Asset & Liability Management and Capital Adequacy Planning Training Course
World’s Premier International ALM Training Provider
This Asset & Liability Management training course teaches you how to effectively manage your ALM function, balance sheet and profitability for your organization.
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Key Benefits of This Asset & Liability Management Course
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 managementtechniques
- 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
Introduction to ALM & Challenges Today
- What is ALM
- ALCP and Country ALCO
- Challenges for ALM Today
ALM Governance and Structure
- ALM Governance
- ALM Structure at Major Banks
Capital and Value Creation
- Capital and Value Creation
- Current Economic Environment
Managing Interest Rate Risks – Short Term Rates
- 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
Bond Price/Yield, Duration
- 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
Long Dated Currency Swaps
- Uses of Long Dated Currency Swaps
- Liability Management and Long Dated Currency Swaps
- Structuring the Swap to Match the Liability
Gapping and Gap Analysis
- Net Interest Income and Market Value of Equity
- Gap and NII
- Gap Metrics and Limits
FX and Funding
- FX Forward and Swap Terminology and Quotations
- Pricing FX Forwards
- Case Study: Generating USD Funding Through JPY Using FX Swaps
Funds Transfer Pricing
- What is FTP?
- Best Practices for FTP
Basel and the New Regulatory Landscape
- The Role of Bank Capital
- Regulat Capital – Basel III
Basel and Credit Risk
- Credit Risk Weighting for RWA Under Basel
- Credit Loss Modeling Fundamentals
- Credit Spreads and Credit Default Swaps
Basel Market and Operational Risk
- Market Risk and the Trading Book
- Operational Risk and Proposed Changes in Basel
Basel New Liquidity and Leverage Measures
- 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
- 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
Who Should Attend / Who Will Benefit
- Investment professionals
- Treasury professionals
- Balance sheet and capital managers
- Asset and liability managers and analysts
- Risk managers and portfolio managers
- Treasury middle office and operations personnel
- Liquidity funding managers
- Treasury auditors
- Financial controllers, accountants and analysts
- Investment bankers
- Regulatory and compliance personnel
Reviews – What People Say
“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
What You Receive
All ONLINE courses include:
Online courses include on-demand video and/or text-based lessons with 12 months access (option to renew).
Go at your own pace.
Courses include digital resources, such as course slide decks, additional reading, exercises & more
Access the course(s) anywhere with an Internet-enabled device. (*Our own mobile app is in the works)
Upon successful course completion, you receive a digital certificate of completion to download & print.
Our training courses are designed to be practical, not just theoretical or academic.
Designed for Busy Professionals
Courses are designed for the busy working professional.
Sneak Peak Inside the Online Learning Portal
Have a look inside the online learning portal to get an idea of what it’s like.
Online Cohort-Based Sessions (*subject to availability) also include:
Instructor Q&A’s via Zoom, text-based answers and/or recorded audios.
Q&A’s are at pre-scheduled times and recorded (where applicable).
Learn with a group of like-minded peers from all over the world in a small group setting.
Why Ethan Hathaway
There are LOTS of training providers in the market, so why choose Ethan Hathaway?
Ethan Hathaway has established itself as a reputable training partner for over 16+ years to top companies all over the world.
Our philosophy is to make YOU as valuable as can be both in your career and your employer.
Online delivery is available as below.
For a limited time:
For Individual learning at your own pace.
Online with Instructor Q&A
Includes online self-study course + scheduled Instructor Q&A sessions
In-House Customized / Bespoke
Either schedule a private in-house delivery and/or customize the content to your specific needs.