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Optimising and Updating Asset and Liability Management (ALM) 2014

Effectively interpreting core business objectives for managing a bank’s balance sheet to be consistent with its goals for long-term growth while actively managing its risk

Although always important, ALM is fast becoming one of the most important structures within a banks framework. The recent financial crisis saw many financial institutions fail due to ineffective management of their assets and liabilities portfolio. Whilst the global market struggles to get back on its feet, the risk of a mismatch between liabilities and assets remains at the forefront of any banks mind. Financial institutions need to deal with a list of inherent risks in their normal course of business ensuring they retain control of the balance sheet and maintain profitability, stability and solvency. This in-depth two-day seminar will examine the potential risk from the balance sheet and define a prudent assets and liabilities management (ALM) process, enhancing the return and controlling the risk profile. The course will cover updates on key issues such as implementation and managing interest rate risk. It will also include a focus on optimising ALM by measuring profitability and assets, whilst also ensuring that you have the correct application of economic capital and adequate regulatory capital. This will be completed with a look at application of fund transfer pricing and its advantages in
managing ALM.

• Understand how to optimise your ALM in light of the new capital standards
• Learn new liquidity management techniques in order to protect your liabilities
• Explore new techniques to manage your interest-rate risk
• Accruing further expertise in the various strategies available to manage interest rate and liquidity risk better
• Uncovering and appreciating the various links between liquidity, market and credit risk
• Reviewing the newest regulatory developments including proposed changes in Capital Adequacy Risk such as Basel 1-3
• Mastering the use of GAP and Duration GAP analysis to assess the interest rate sensitivity of a bank’s assets and liabilities
• Establishing a strong foundation of understanding the effects of changing interest rate levels and spreads on a bank’s profitability
• Employing the usage of swaps, options and other derivatives to manage a bank’s interest rate exposure and for enhancing spread income
• Quantifying, managing and assessing a bank’s exposure to funding and market liquidity risk
• Profiting from a closer look at the ALCO and examine its different aspects such as role, task, policies, procedures and implementation