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Course Schedule
Classroom Sessions:
Date Venue
Online Sessions:
Date Venue
26-24 Feb 2025 Online
26-24 Feb 2025 Online
04-02 Jun 2025 Online
04-02 Jun 2025 Online
03-01 Sep 2025 Online
03-01 Sep 2025 Online
12-10 Nov 2025 Online
12-10 Nov 2025 Online
Introduction

INTRODUCTION

In the banking industry, Asset and Liability Management (ALM) is crucial for maintaining financial stability and maximizing profitability in a complex and volatile market. Asset and Liability Management (ALM) training courses in banking equip professionals with the knowledge and skills needed to balance assets and liabilities, optimize liquidity, and manage financial risks effectively. Through these specialized ALM training courses, banking professionals learn to navigate regulatory requirements, control interest rate exposures, and strengthen balance sheet resilience—vital competencies in today’s evolving financial landscape.

These Asset and Liability Management (ALM) training courses cover a broad range of banking-specific strategies, from foundational ALM concepts to advanced risk management techniques. Participants gain a thorough understanding of regulatory compliance, liquidity management, and capital planning, as well as practical experience through case studies tailored to banking environments.

This Asset Liability Management training course will examine how banks should manage their assets and liabilities to ensure they do not inadvertently find themselves exposed to the risks which brought SVB down. It will show how these risks arise and what strategies a bank needs to pursue to keep these risks within acceptable agreed limits. It will examine the stability of a bank’s funding base and assess what assets it can acquire in view of this stability. It will show, in particular, how a bank can manage the interest rate risk inherent in its non-maturity deposits and capital.

This Asset and Liability Management (ALM) training course will highlight:

  • Core ALM principles tailored to banking, including regulatory requirements, risk management, and balance sheet stability.
  • Strategies to mitigate risks related to interest rates, liquidity, and credit, ensuring robust financial performance in banking.
  • Asset and liability alignment techniques to enhance the bank’s profitability and support long-term financial goals.
  • Effective liquidity and capital strategies to meet banking industry standards and maintain operational resilience.
  • Real-world case studies to apply ALM concepts within a banking context, enhancing decision-making and analytical skills.

Objectives

  • Describe the role of the Asset Liability Management function within a bank
  • Examine the regulations governing Asset Liability Management issues
  • Develop strategies to manage Asset Liability Management risks
  • Understand how the Asset Liability Management function can contribute to maximising the bank’s return on equity while operating within the bank’s risk appetite

Personal Impact

Personal Impact of Completing this ALM Training Course in Banking are:

  • Gain advanced knowledge in asset and liability management, enabling informed financial decision-making
  • Build proficiency in managing key risks, making you a critical asset to your organization
  • Position yourself as a specialist in ALM, opening doors to leadership roles within the banking industry
  • Develop the ability to confidently tackle complex financial challenges with refined analytical skills
  • Stay current with evolving regulations, ensuring your institution remains compliant and resilient
  • Boost your leadership potential with specialized ALM skills and strategic insights.

Objectives

Training Methodology

Organisational Impact

Personal Impact

Who Should Attend?

Course Outline

Day 1

Introduction to banking

  • The unique nature of banking
  • The structure of a bank balance sheet
  • The manner in which banks generate income
  • The risks to which banks are exposed
  • The regulations imposed on banks
  • Net interest margin
  • The yield curve
  • Discounted cash flow
  • The various forms of regulatory capital and funding: CET1, Tier 1, Tier 2, MREL
  • Requirements for capital: credit risk, market risk, operational risk, interest rate risk
  • Regulatory capital requirements: Pillar 1, Pillar 2 and ICAAP
  • Measuring bank performance: return on risk-adjusted capital (RORAC), economic value added (EVA)

Day 2

Funding the Bank

  • The nature of bank assets and liabilities
  • Cash flow mismatch
  • The optionality embedded in bank balance sheets
  • The behavioural maturity of bank liabilities
  • Deposit guarantees
  • Liquidity regulations
  • Loan-to-deposit ratio
  • Regulatory requirements: Liquidity coverage ratio (LCR), net stable funding ratio (NSFR)
  • Funds transfer pricing
  • ILAAP, L-SREP
  • Liquidity stress test
  • Contingency funding plan 2

Day 3

Market Risk in Banking

  • Accrual accounting vs mark-to-market accounting
  • Trading book vs banking book
  • Fair value hierarchy
  • Interest rate swaps, FRAs, cross-currency swaps
  • Marking to market
  • Valuation adjustments: CVA, DVA, FVA
  • Price sensitivity of assets and liabilities
  • Measures of price sensitivity: modified duration, basis point value
  • Measuring market risk of portfolios: value-at-risk (VaR) and expected shortfall
  • Optionality measures and convexity
  • Capital for market risk-taking
  • Using derivatives to manage market risks
  • Counterparty credit risk
  • Clearing, collateral and margining

Day 4

Interest Rate Risk in the Banking Book (IRRBB)

  • Risks to net interest margin
  • Gap analysis
  • Sources of risk: fixed, floating and administered rate products
  • Treatment of equity, non-maturity balances and free funds
  • Structural hedging
  • Types of risk: yield curve risk, customer optionality
  • Pipeline and prepayment risk
  • Non-performing loans
  • Risk management: repricing gaps, derivatives
  • Behaviour of non-maturity deposits
  • Income measures of interest rate risk
  • Economic value measures of interest rate risk
  • Economic value of equity (EVE) vs Earnings at risk (EAR)
  • What to hedge, when to hedge, how much to hedge
  • Trade-off between income and economic value
  • The link between liquidity risk and interest rate risk
  • Basel III IRRBB regulations (Apr/16)
  • EBA IRRBB guidelines (Jul/18)
  • PRA rules and guidance (Dec/21) 3

Day 5

The ALM Process

  • The Asset Liability Committee (ALCO)
  • ALCO roles and responsibilities
  • Setting risk appetite
  • Developing contingency funding plan
  • Designing stress tests
  • Implementing the structural hedge
الشهادات المُعتمَدة
  • On successful completion of this training course, GLOMACS Certificate will be awarded to the delegates
  • Continuing Professional Education credits (CPE) : In accordance with the standards of the National Registry of CPE Sponsor, one CPE credit is granted per 50 minutes of attendance

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