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seminar logoTreasury Management for Islamic Banks
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Course Background

Treasury management in Islamic banks is challenging for several reasons. First, access to long term funding sources is limited, whilst raising the liquidity profile of assets as a response by keeping them short-dated creates an income drag. Second, even though Shariah compliant derivative structures are now more widely accepted, using them to lay off market risks is not well understood.

This 2-day intensive course is closely tailored to the needs of treasury management for Islamic banks, and is delivered within a consistent focus on practical responses to evolving scenarios that can threaten the survival of Islamic banks. The course covers the full array of contemporary treasury products available to Islamic banks and their effective use in the management of liquidity and market risks. These products include liquidity investment and funding products, and Shariah compliant derivatives used for hedging purposes.

The course will also include a high level of interactive discussion, analysis of case studies, and thorough instruction in techniques which can be applied in everyday use to meet treasury management needs.

KEY LEARNING OUTCOMES

  • Understand cash management, liquidity investment and funding for Islamic banks
  • Learn and implement risk control, governance, and regulatory requirements for treasury management
  • Understand complex Shariah compliant derivatives and risk management structures and their application to the effective management of market risks
  • Learn advanced treasury operations, from deal execution to documentation in Islamic banks

Where & When

Date: 15th & 16th January 2020
Venue: Kuala Lumpur

Who Should Attend?

This course has been specifically designed to benefit:
  • Chief Risk Officers
  • Chief Financial Officers
  • Financial Risk Managers
  • Treasury and ALM professionals
  • Risk Analysts
  • Financial Analysts
  • Credit Managers
  • Credit Portfolio Managers
  • Asset Managers
  • Corporate bankers
  • Retail bankers
  • Supervisors, regulators and risk standard setters

Fee

Early bird : RM 2,835
Early Bird: Registrations received on or before 12th December 2019, will receive a 10% discount. No discount shall be given to registrations received after this cut-off date.
Standard : RM3,150 per delegate
2 delegates (5% Discount) : RM2,995 per delegate
3 delegates (15% Discount) : RM2,680 per delegate
4 delegates (25% Discount) : RM2,365 per delegate
5 delegates (30% Discount) : RM2,205 per delegate

In-house/group training

If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
In-House Training Brochure

Manual Registration

Kindly complete the registration form and email to [email protected] or fax +603 2162 7810

Register Online

For enquiries please contact:

Mathias Sosovele
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 25

Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44

Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810

For sponsorship & speaking opportunities:

Andrew Tebbutt

Managing Director
[email protected]
Direct Line: +603 2162 7802

For marketing and media enquiries

Tiviaa James

Marketing Executive
[email protected]
Direct Line: +603 2162 7800 ext 62

Seminar Agenda

  • Day 1: Treasury Management and Products
  • Day 2: Islamic Derivatives and Treasury Operations

Day 1: Treasury Management and Products

Treasury Objectives and Governance
  • Treasury objectives
    • Funding the bank
    • Cash management and investing surplus liquidity
    • Market risk management - Foreign exchange and interest rates
  • Treasury governance
    • ALCO and gap analysis
    • Treasury limits structure
      • Limits setting process
      • Breaches, escalations and resolutions
    • Treasury Shariah audit
  • Relevant regulatory requirements for Islamic treasuries
    • Interest rate risk in the banking book (IRBBB)
    • Liquid assets and Net stable funding ratios
    • High quality liquid assets and Sukuk eligibility
Islamic Treasury Funding
  • Core deposits as a stable source of funding
    • Current, savings and profit-sharing investment accounts
    • Relevance and importance of deposit insurance to Islamic banks
  • Short-term funding – interbank money market
    • Products – Murabahah, Wakalah
    • Pricing – importance of currency peg to US dollar
    • Restrictions on commodities
  • Long-term funding products – fixed income market
    • Sukuk Products
      • Types of Sukuk
      • Choice of rate fixing and maturity
      • Additional Tier 1 equity
    • Sukuk pricing – understanding the swaps curve and credit ratings
    • Characteristics of the Sukuk market
    • Sukuk issuance process and the role of treasury
Islamic Treasury Investment
  • Inter-bank money market placement
  • Investment funds and syndicated Murabahah
  • Trading in Sukuk for treasury management purposes
Liquidity Management
  • Stability and sustainability of funding sources
  • Liquid assets buffer: amount and choice of liquid assets; portfolio management
  • Scenarios and back-testing
  • Stress-testing liquidity
  • Contingency planning and lender of last resort for Islamic banks
  • Key metrics: Cash forecast, roll-off forecast, liquidity forecast, concentrations
Analysis and Discussion of Case Studies:
  • Arcapita Bank
  • Northern Rock

Day 2: Islamic Derivatives and Treasury Operations

Islamic Derivatives and Risk Management Tools
  • Shariah compliant contracts for structuring Islamic derivatives
    • Waad
    • Murabahah
  • Applications of Waad and Murabahah
    • FX forwards
    • Profit rate swaps
    • Currency swaps
    • FX and interest rate options
  • How to use Islamic derivatives for FX exposures
    • Measuring FX risk: from nominal exposure to Value-at-Risk
    • Mitigating FX exposures with Islamic derivatives
  • How to use Islamic derivatives for interest rate risk exposures
    • Measuring interest rate risk: earnings at risk
    • Mitigating interest rate risk with Islamic derivatives
  • Other uses for Islamic derivatives
    • Commodity and equity linked notes for investment and funding
  • Latest developments in the structuring and use of Shariah compliant derivatives
  • Practical challenges to overcome in using Islamic derivatives

Group Discussion: Deutsche Bank’s white paper on Islamic derivatives

Treasury Operations
  • Treasury limits and delegated authorities
  • Liquidity and FX deal management
    • Procedural requirements, control, conditions of use
    • Shariah requirement for dealing with late payments
    • Dealing with brokers
    • Settlement and confirmation
    • Back-to-back deals and netting arrangements
    • Reducing operational risk
  • Treasury placement - MATP
  • Islamic derivatives
    • Documentation - ISDA, IIFM Master Agreement
    • Valuation and collateral management
Final Discussion and Course Wrap-Up

Download Brochure

Where & When

Date: 15th & 16th January 2020
Venue: Kuala Lumpur

Who Should Attend?

This course has been specifically designed to benefit:
  • Chief Risk Officers
  • Chief Financial Officers
  • Financial Risk Managers
  • Treasury and ALM professionals
  • Risk Analysts
  • Financial Analysts
  • Credit Managers
  • Credit Portfolio Managers
  • Asset Managers
  • Corporate bankers
  • Retail bankers
  • Supervisors, regulators and risk standard setters

Fee

Early bird : RM 2,835
Early Bird: Registrations received on or before 12th December 2019, will receive a 10% discount. No discount shall be given to registrations received after this cut-off date.
Standard : RM3,150 per delegate
2 delegates (5% Discount) : RM2,995 per delegate
3 delegates (15% Discount) : RM2,680 per delegate
4 delegates (25% Discount) : RM2,365 per delegate
5 delegates (30% Discount) : RM2,205 per delegate

In-house/group training

If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802./p>

Manual Registration

Kindly complete the registration form and email to [email protected] or fax +603 2162 7810

Register Online

Course Background

Treasury management in Islamic banks is challenging for several reasons. First, access to long term funding sources is limited, whilst raising the liquidity profile of assets as a response by keeping them short-dated creates an income drag. Second, even though Shariah compliant derivative structures are now more widely accepted, using them to lay off market risks is not well understood.

This 2-day intensive course is closely tailored to the needs of treasury management for Islamic banks, and is delivered within a consistent focus on practical responses to evolving scenarios that can threaten the survival of Islamic banks. The course covers the full array of contemporary treasury products available to Islamic banks and their effective use in the management of liquidity and market risks. These products include liquidity investment and funding products, and Shariah compliant derivatives used for hedging purposes.

The course will also include a high level of interactive discussion, analysis of case studies, and thorough instruction in techniques which can be applied in everyday use to meet treasury management needs.

KEY LEARNING OUTCOMES

  • Understand cash management, liquidity investment and funding for Islamic banks
  • Learn and implement risk control, governance, and regulatory requirements for treasury management
  • Understand complex Shariah compliant derivatives and risk management structures and their application to the effective management of market risks
  • Learn advanced treasury operations, from deal execution to documentation in Islamic banks

Seminar Agenda

  • Day 1: Treasury Management and Products
  • Day 2: Islamic Derivatives and Treasury Operations

Day 1: Treasury Management and Products

Treasury Objectives and Governance
  • Treasury objectives
    • Funding the bank
    • Cash management and investing surplus liquidity
    • Market risk management - Foreign exchange and interest rates
  • Treasury governance
    • ALCO and gap analysis
    • Treasury limits structure
      • Limits setting process
      • Breaches, escalations and resolutions
    • Treasury Shariah audit
  • Relevant regulatory requirements for Islamic treasuries
    • Interest rate risk in the banking book (IRBBB)
    • Liquid assets and Net stable funding ratios
    • High quality liquid assets and Sukuk eligibility
Islamic Treasury Funding
  • Core deposits as a stable source of funding
    • Current, savings and profit-sharing investment accounts
    • Relevance and importance of deposit insurance to Islamic banks
  • Short-term funding – interbank money market
    • Products – Murabahah, Wakalah
    • Pricing – importance of currency peg to US dollar
    • Restrictions on commodities
  • Long-term funding products – fixed income market
    • Sukuk Products
      • Types of Sukuk
      • Choice of rate fixing and maturity
      • Additional Tier 1 equity
    • Sukuk pricing – understanding the swaps curve and credit ratings
    • Characteristics of the Sukuk market
    • Sukuk issuance process and the role of treasury
Islamic Treasury Investment
  • Inter-bank money market placement
  • Investment funds and syndicated Murabahah
  • Trading in Sukuk for treasury management purposes
Liquidity Management
  • Stability and sustainability of funding sources
  • Liquid assets buffer: amount and choice of liquid assets; portfolio management
  • Scenarios and back-testing
  • Stress-testing liquidity
  • Contingency planning and lender of last resort for Islamic banks
  • Key metrics: Cash forecast, roll-off forecast, liquidity forecast, concentrations
Analysis and Discussion of Case Studies:
  • Arcapita Bank
  • Northern Rock

Day 2: Islamic Derivatives and Treasury Operations

Islamic Derivatives and Risk Management Tools
  • Shariah compliant contracts for structuring Islamic derivatives
    • Waad
    • Murabahah
  • Applications of Waad and Murabahah
    • FX forwards
    • Profit rate swaps
    • Currency swaps
    • FX and interest rate options
  • How to use Islamic derivatives for FX exposures
    • Measuring FX risk: from nominal exposure to Value-at-Risk
    • Mitigating FX exposures with Islamic derivatives
  • How to use Islamic derivatives for interest rate risk exposures
    • Measuring interest rate risk: earnings at risk
    • Mitigating interest rate risk with Islamic derivatives
  • Other uses for Islamic derivatives
    • Commodity and equity linked notes for investment and funding
  • Latest developments in the structuring and use of Shariah compliant derivatives
  • Practical challenges to overcome in using Islamic derivatives

Group Discussion: Deutsche Bank’s white paper on Islamic derivatives

Treasury Operations
  • Treasury limits and delegated authorities
  • Liquidity and FX deal management
    • Procedural requirements, control, conditions of use
    • Shariah requirement for dealing with late payments
    • Dealing with brokers
    • Settlement and confirmation
    • Back-to-back deals and netting arrangements
    • Reducing operational risk
  • Treasury placement - MATP
  • Islamic derivatives
    • Documentation - ISDA, IIFM Master Agreement
    • Valuation and collateral management
Final Discussion and Course Wrap-Up

Seminar Speaker


Dr Ken Baldwin 
Former Director Financial Policies & Planning, Islamic Development Bank

Dr. Ken Baldwin has worked as a practitioner in banking and finance for over 25 years in senior positions spanning the front and middle offices. Having graduated from Oxford University with a first-class honors degree in Physics in 1989, he qualified as a Chartered Accountant with PWC, before joining UBS, and then later Credit Suisse, in derivatives risk and control functions based in London.

He gained a PhD in the microeconomic theory of risk sharing in Islamic contracts, and worked in the GCC for 15 years in Islamic retail and Islamic investment banks. Whilst at Abu Dhabi Islamic Bank, Dr. Ken built an ALM analytic technology platform capable of capturing liquidity and interest rate risks inherent in the many varied Islamic financing products used at retail and corporate levels. He then moved to take up the position of MENA Regional Head of Quantitative Analysis for Citigroup. At Citicorp, Dr. Ken worked on structuring complex products used by Gulf-regional corporations to hedge FX and interest risks. Still residing in Bahrain, Dr. Ken then joined Investcorp, where he worked on the risk due diligence of corporate private equity and real estate private equity transactions and portfolio management. After leaving Investcorp, he set up the risk management department for venture capital bank, providing Basel III compliance and deal analysis for the bank. He then operationalized a new Islamic investment bank as its Chief Operating Officer for 3 years, before his most recent industry role at the Islamic Development Bank, where he set up and ran a new department tasked with developing Financial Policies and Planning underpinned by robust financial analytic tools and methodologies designed specifically for the IDB. Dr. Ken is currently a senior university lecturer in finance in the UK. He has published quantitative finance articles in peer-reviewed academic journals including the Journal of Risk, and during his earlier career, taught CFA and FRM professional certifications as a pastime for the Bahrain Institute of Banking and Finance.

Ken is a British Muslim.

Seminar Registration

*Please note there is a fee for attending this program. Please contact us for more details.

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Before completing this registration form please read and understand our booking and cancellation policy. Thank you.

Booking, Payment and Cancellation Policy

By completing, signing and sending us this registration form you are confirming delegate places on the seminar. You are also confi rming your understanding of our Booking, Payment and Cancellation Policy.

Cancellation:  If delegates cannot attend the seminar replacement participants are always welcome. Otherwise delegates must request in writing (letter, fax or email) to cancel registration/s or transfer to a diff erent seminar at least 21 days before the seminar start date to be eligible for a refund, less a 5% administration fee. Delegates who cancel within 21 days of the seminar start date, or who do not attend, are liable to pay the full seminar fee and no refunds will be given. Instead fees will be converted to a IFN Seminars voucher equivalent to the original fee, less a 15% administration charge. This voucher is transferable within your organization and must be redeemed within one year of issue or become void. If a seminar is postponed for whatever reason delegate bookings will be automatically transferred to the new seminar date. Delegates who wish to transfer to a diff erent seminar will be subject to the same terms as above and charged the diff erence in seminar fees. No refunds or seminar vouchers will be issued for a no-show. Payment Terms: All seminars fees are to be received within 14 days of invoice date. REDmoney shall receive the full seminar fee with no deductions of any description. All telegraphic transfer fees, taxes and levies (domestic or otherwise) shall be borne by the sponsoring organization.
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For enquiries please contact:

Mathias Sosovele
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 25

Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44

Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810

For sponsorship & speaking opportunities:

Andrew Tebbutt

Managing Director
[email protected]
Direct Line: +603 2162 7802

For marketing and media enquiries

Tiviaa James

Marketing Executive
[email protected]
Direct Line: +603 2162 7800 ext 62

About Us

REDmoney Events designs, organizes and hosts industry-leading conferences, forums, roadshows and seminars focusing on the Islamic financial markets across a global, regional and national level.

+603 2162 7800
[email protected]

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