Fee per participant: RM5,000/US$1,650
Please note that the Ringgit price is applicable to Malaysia-domiciled participants only. Discounts are available for group bookings. Please contact us for more details.
Asset Liability Management
For Financial Institutions
Date: 1st & 2nd October 2024
Venue: DoubleTree by Hilton Kuala Lumpur
Classroom Training
COURSE BACKGROUND
The topic of ALM is extremely relevant in today’s global financial markets, especially after witnessing the avalanche downfall of three large accomplished financial institutions in the United States in 2023. The uncomfortable fact remains that a similar situation may be looming in many other countries, including Malaysia. Sound asset-liability management is crucial if financial institutions are to effectively avoid the pitfalls of market volatility. Financial institutions experience stress for basic reasons, including liquidity mismanagement and financial product complexity. Financial innovations and a fast-changing economic environment provide opportunities to gain but can also create significant risks. Managing these risks without losing sight of getting the basics right is what good ALM is all about.
This two-day training program will cover the essentials of ALM and the role of the ALCO to remind delegates of the most important techniques applied to measure and manage interest rate risk, liquidity risk, and currency risk. Also covered will be important ALM governance issues, as well as tools to analyse risk and report on crucial regulatory issues.
- Key Learning Outcomes:
- Defining the roles and responsibilities of asset liability management, approaches and models
- Understanding ALM governance, structure, policies and reporting
- Assessing the role and functions of the important asset liability and risk management committees
- Identifying major risks facing financial institutions and the role of ALM in their mitigation
- Evaluating liquidity ratios and developing an effective liquidity management plan
- Assessing types of cashflow and the importance of cashflow management
- Understanding the role of ALM in managing interest rate and liquidity risks, and developing crisis management and contingency funding plans
- Assessing profitability and other risks, and effectively using financial models
- Using key metrics to undertake cost and performance measurement, including IRRBB
- Mitigating foreign exchange and equity investment risk
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
Asset Liability Management
For Financial Institutions
Date: 1st & 2nd October 2024
Venue: DoubleTree by Hilton Kuala Lumpur
Classroom Training
Send me Details
COURSE BACKGROUND
The topic of ALM is extremely relevant in today’s global financial markets, especially after witnessing the avalanche downfall of three large accomplished financial institutions in the United States in 2023. The uncomfortable fact remains that a similar situation may be looming in many other countries, including Malaysia. Sound asset-liability management is crucial if financial institutions are to effectively avoid the pitfalls of market volatility. Financial institutions experience stress for basic reasons, including liquidity mismanagement and financial product complexity. Financial innovations and a fast-changing economic environment provide opportunities to gain but can also create significant risks. Managing these risks without losing sight of getting the basics right is what good ALM is all about.
This two-day training program will cover the essentials of ALM and the role of the ALCO to remind delegates of the most important techniques applied to measure and manage interest rate risk, liquidity risk, and currency risk. Also covered will be important ALM governance issues, as well as tools to analyse risk and report on crucial regulatory issues.
- Key Learning Outcomes:
- Defining the roles and responsibilities of asset liability management, approaches and models
- Understanding ALM governance, structure, policies and reporting
- Assessing the role and functions of the important asset liability and risk management committees
- Identifying major risks facing financial institutions and the role of ALM in their mitigation
- Evaluating liquidity ratios and developing an effective liquidity management plan
- Assessing types of cashflow and the importance of cashflow management
- Understanding the role of ALM in managing interest rate and liquidity risks, and developing crisis management and contingency funding plans
- Assessing profitability and other risks, and effectively using financial models
- Using key metrics to undertake cost and performance measurement, including IRRBB
- Mitigating foreign exchange and equity investment risk
Fee per participant: RM5,000/US$1,650
Please note that the Ringgit price is applicable to Malaysia-domiciled participants only. Discounts are available for group bookings. Please contact us for more details.
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
Session 1: Introduction to Asset Liability Framework
- What is ALM?
- ALM models and approaches
- Types of market risks
- Function of the ALCO
- Structure and reporting
- ALM governance and structure
- Major risks and ALM policy
- Liquidity management plan (LMP)
Session 2: Funding and Liquidity Risk Management
- A reminder of yield curves and indicators relevant to ALM
- Understanding types of cashflows
- Importance of cashflow management:
- Understanding of net funding cash inflows and outflows
- Short-term vs long-term (Basel requirements)
- The importance of liquidity monitors: liquidity coverage ratio (LCR) – high quality liquid assets (HQLA) versus net cash outflows & liquidity asset buffer (LAB) and net stable funding ratio (NSFR)
Case Study: Silicon Valley Bank 2023
Role play: The ALCO response to crisis
Wrap-up Q&A
Session 3: Interest Rate & Liquidity Risk Management
- Key risks principles and limits
- Interest rate and liquidity risks
- Role play: market conditions and managing risk
- Detailed explanation of how to manage interest rate risks and liquidity risk - tools and methods to manage risk exposures and specific risk limits
- Funding gaps and behavioural adjustments – understanding contractual maturities versus re-pricing maturities
- Balance sheet rate and net interest income (NII) sensitivity analysis – identifying rate sensitive assets (RSA) and rate sensitive liabilities (RSL)
- Gapping and gap analysis: gap metrics and limits, and the maximum cumulative outflow (MCO)
- How to develop and execute the crisis management plan (CMP) and contingency funding plan (CFP)
Session 4: Profitability & Other Risks
- ALM objectives: finding balance between liquidity and profitability
- Financial modelling and the budget process
- Cost and performance measurements:
- Return on assets (ROE), return on capital (ROC), return on assets (ROA)
- Interest rate risk in the banking book (IRRBB) measurement - net interest income, economic value of equity (EVE), earnings at risk (EAR)
- Cost of funds (COF)
- Funds transfer pricing (FTP)
- Capital management and stress testing
- Managing FX risk and equity investment risk
- Managing reserves and capital requirements
The Future of ALM
- Market transformations and technology advancement
Wrap-up Q&A
EXPERT COURSE DIRECTOR
Roland Yeoh
Former Treasurer, KBZ Bank
Roland Yeoh specializes in treasury dealing, strategic ALM and balance sheet management and has more than 30 years’ experience of both local and global financial markets, managing multi asset classes including interest rates, foreign exchange and fixed income. Roland has extensive experience of treasury front office dealing, ranging from actual client trades, to covering back-end systems implementation. Roland is highly skilled in finance under capital and balance sheet management, the role of the bank ALCO, and the assets and liabilities management function. Many of Roland’s recent roles have involved responsibility for creating equilibrium between profit generation and risk mitigation, and creating value for stakeholders. Roland is an advocate of educating bankers and finance professionals fully in the concepts of ALM and liquidity risks, and how to correctly implement ALM frameworks into business structures including manpower skills and system setups. For over 24 years Roland held senior positions at two Malaysian banks, namely RHB (ex-DCB) and AmBank. Most recently, Roland spent seven years working in Myanmar as a foreign professional employed in the banking sector. While in Myanmar, Roland held the role of Treasurer for KBZ Bank Ptd Ltd., the largest local private commercial bank in Myanmar. During this time, Roland established the bank’s finance ALCO functions and committee, and remodelled and streamlined the bank’s entire treasury dealing room to incorporate full digitalization.
Who Should Attend?
The 2-day program has been designed for anyone who requires a detailed understanding of asset and liability management, the role of the asset and liability committee, and the tools and techniques used for effective ALM within a financial institution. The course will benefit participants from departments such as risk management, treasury, finance and financial management, audit and compliance from financial institutions including banks, insurance companies, investment companies, and regulators.
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