Introduction to Asset and Liability Management

Course details

This is a basic course on ALM. It explains the process of ALM in banks and its importance. The course also discusses the risks facing banks in the context of to-day’s business environment and how ALM can be used as a risk management tool.

Objectives

Upon the completion of this course, the participant will:

• Learn to analyze management of both sides of balance sheet of a financial institution facing different risks
• Understand the relationship between central banks and interest rate fluctuations
• Analyze and interpret yield curves
• Know of the different models used to measure risk in the ALM context

Content Highlights

• Analyzing a bank’s balance sheet
• Various risks faced by a bank
• The concept of ALM in banks
• Risk management through ALM
• The Central Bank and the interest rate risk
• Term structure of interest rates
• The re-pricing model
• Maturity model
• Duration model
• Liquidity risk
• Liability-side liquidity risk
• Asset-side liquidity risk
• ALCO

Target audience

• Entry level Treasury executives; Traders and financial control executives; Investment analysts; Financial analysts.

Course Structure

• This course consists of lectures, discussions, in-class exercises and MCQs.