Treasury Management for Financial Institutions

Treasury Management for Financial Institutions:
Funding, Liquidity & Hedging
A Three-Part, Online Course

Date: 6^th - 8^th March 2023

COURSE BACKGROUND

Robust treasury management is essential to both conventional and Islamic banks. Banks with strong treasury capabilities are able to position themselves effectively against liquidity and market risks which impact performance and threaten survival during periods of extreme stress, such as the Global Financial Crisis, 2007-9. Achieving efficient and effective treasury management is particularly challenging in Islamic banks for several reasons. First, access to long term funding sources is limited. Improving the ease with which assets can be liquidated as a precaution against liquidity risk, for example by reducing maturities, creates income drag in upwards-sloping yield curve environments. Second, even though Shariah-compliant derivative structures are now more widely accepted, using them to hedge market risks is not well understood.

This online course is closely tailored to the needs of treasury managers in both conventional and Islamic banks, and is delivered within a consistent focus on practical responses to evolving scenarios that threaten banks. The course covers a wide array of contemporary treasury products available to banks and their effective use in the management of liquidity and market risks. As well as liquidity investment and balance sheet funding products, the course covers both conventional and Shariah-compliant tools used to hedge risks.

This fully updated 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 conventional and Islamic banks
- Learn how to use hedging tools to manage market risk
- Gain in-depth knowledge of Shariah-compliant hedging structures in use in banks today

Fee

1 participant: RM2,500/$725
2 participants: RM5,000/$1,450
3 participants: RM7,500/$2,175
4 participants: RM10,000/$2,900
5 participants: RM12,500/$3,625

Discounts are available for group bookings. Please contact us for more details.

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

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

Treasury Management for Financial Institutions:
Funding, Liquidity & Hedging
A Three-Part, Online Course

Date: 6^th - 8^th March 2023

6.00am - 9.00am
UK

10.00am - 1.00pm
UAE

2.00pm - 5.00pm
Singapore/KL

COURSE BACKGROUND

Key Learning Outcomes:
- Understand cash management, liquidity investment and funding for conventional and Islamic banks
- Learn how to use hedging tools to manage market risk
- Gain in-depth knowledge of Shariah-compliant hedging structures in use in banks today

WHO WILL BENEFIT?

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

Program Format

This three-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

Fee

1 participant: RM2,500/$725
2 participants: RM5,000/$1,450
3 participants: RM7,500/$2,175
4 participants: RM10,000/$2,900
5 participants: RM12,500/$3,625

Discounts are available for group bookings. Please contact us for more details.

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

AGENDA AND FORMAT

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

PLATFORM

AGENDA

Course duration is nine hours divided into three hours each session.

Day 1

Treasury Objectives and Funding Sources

Treasury Objectives
- Funding the bank
- Cash management and investing surplus liquidity
- Market risk management
  - Foreign exchange
  - Interest rates
- Quiz

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 – time deposits, Murabahah, Wakalah
  - Pricing – importance of currency peg to US dollar for GCC banks
  - Restrictions on commodities for Islamic banks
- Long-term funding products – Bonds
  - Overview of the bonds issuance process
  - Medium Term Note programs
  - Price contamination and bond buy-backs
- Long-term funding products - Sukuk
  - 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
- Quiz

Day 2

Liquidity Management and Hedging Methods

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
- Key metrics: Cash forecast, roll-off forecast, liquidity forecast, concentrations
- Quiz

Case Studies:
- Arcapita Bank
- Northern Rock

Hedging Methods
- How to use derivatives for FX exposures
  - Measuring FX risk: from nominal exposure to Value-at-Risk
  - Mitigating FX exposures using derivatives
- How to use derivatives for interest rate risk exposures
  - Measuring interest rate risk: earnings at risk
  - Mitigating interest rate risk using derivatives
- Quiz

Day 3

Derivative Structures

Conventional Derivatives
- How to finance bought options without paying anything
- Pros and cons of in-house versus outsourced derivatives solutions
- Exotic products and when to use them
- Quiz

Islamic Hedging Products
- 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
- Other uses for Islamic hedging tools
  - Commodity and equity linked notes for investment and funding purposes
- Latest developments in the structuring and use of Shariah compliant hedging tools
- Practical challenges in using Islamic hedging and risk management tools and how to overcome them
- Quiz

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

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 microeconomics, and worked in the GCC for 15 years in retail and 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 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 derivatives 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 risk-based pricing of the bank’s Islamic financing products. 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 International Financial Markets Institutions and Money, and 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.