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Treasury Management for Islamic banks
A Two-Part Online Training Program

Date:  21st & 22nd September 2021

PROGRAM INTRODUCTION

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 online 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 provide the opportunity for 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
    • Understand Shariah compliant derivatives and their application to risk management

Fee

1 participant: RM1,450/$375
2 participants: RM2,900/$750
3 participants: RM4,350/$1,125
4 participants: RM5,800/$1,500
5 participants: RM7,250/$1,875

Early Payment Discount: Payments made on or before 14th September 2021 will receive a 7.5% discount. Payments received after this date will be re-invoiced for the full amount.

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.
Learn More

Send me Details

For enquiries please contact:

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

Govina Selvanthran

Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22

Send me Details

Who Will Benefit?

  • This course has been specifically designed for the benefit of:
    • 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

1 participant: RM1,450/$375
2 participants: RM2,900/$750
3 participants: RM4,350/$1,125
4 participants: RM5,800/$1,500
5 participants: RM7,250/$1,875

Early Payment Discount: Payments made on or before 14th September 2021 will receive a 7.5% discount. Payments received after this date will be re-invoiced for the full amount.

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>

PROGRAM INTRODUCTION

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 online 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 provide the opportunity for 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
    • Understand Shariah compliant derivatives and their application to risk management

AGENDA AND FORMAT

Each session will be interactive in a seminar format, with participants encouraged to engage with questions throughout.

PLATFORM

This two-part training program will be delivered online through a stable, secure and free-to-access platform. The program itself will be delivered through lectures, worked examples and case studies in order to ensure a detailed and practical understanding of the program content. Participants will have plenty of opportunity to ask questions and interact with the program director. Login details and program materials will be sent to participants upon receipt of payment

AGENDA

Part 1: Treasury Management and Products

Treasury Objectives
  • Funding the bank
  • Cash management and investing surplus liquidity
  • Market risk management - Foreign exchange and interest rates
Treasury Funding Sources
  • 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 for GCC Islamic banks
    • 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
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
Case Studies:
  • Arcapita Bank
  • Northern Rock

Part 2: Islamic Derivative Products

Islamic Derivatives
  • Shariah compliant contractual building blocks
    • Wa’ad
    • Murabahah
  • Applications of Wa’ad and Murabahah to Structuring
    • 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 using Islamic derivatives
  • How to use Islamic derivatives for interest rate risk exposures
    • Measuring interest rate risk: earnings at risk
    • Mitigating interest rate risk using Islamic derivatives
  • Other uses for Islamic derivatives
    • Commodity and equity linked notes for investment and funding purposes
  • Latest developments in the structuring and use of Shariah compliant derivatives
  • Practical challenges in using Islamic derivatives and how to overcome them
Group Discussion:

Deutsche Bank’s white paper on Islamic derivatives

Course Conclusion & Wrap

EXPERT COURSE DIRECTOR


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 rate 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 an Assistant Professor of 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.

WHO WILL BENEFIT?

  • This course has been specifically designed for the benefit of:
    • 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

For enquiries please contact:

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

Govina Selvanthran

Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22

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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