Nigerian Seminars and Trainings

Search all upcoming seminars, conferences, short management courses and training in Nigeria and around the World

business logo

Strategic Asset/Liability Management Course

By: TSI Limited

Rwanda

15 - 19 Jul, 2024  5 days

Follow Event

  

USD 4,500

Venue: Kigali Rwanda

After the global financial crisis, Asset and Liability Management in banks have become more challenging than ever. The regulation that followed the crisis, in particular Basel III-IV has meant that optimization of assets and liabilities are vital in mitigating the risks confronting Return on Equity. Strategic Asset-Liability Management (ALM) can significantly improve financial performance by delivering a better balance between returns and risks across a more comprehensive set of both on- and off-balance sheet assets and liabilities. The collapse of Silicon Valley Bank has highlighted once again that banks can collapse when they pursue inappropriate asset liability management strategies. Mark-to-market losses on unhedged fixed income portfolios become realised losses if these losses trigger withdrawals, forcing asset sales, as depositors lose confidence in the bank. Uninsured deposits magnify the risk of withdrawal since the holders of those deposits are especially conscious of the bank’s financial position.

Learning Objectives

At the end of this training session, participants would be able to:

  • Organize your ALM functions efficiently
  • Measure and manage all key risks faced in ALM, including through use of derivatives and dynamically over time
  • Set appropriate incentives through funds and full transfer pricing and economic value added frameworks to strategically steer the balance sheet
  • Conduct ALM holistically, integrating all key risks, and subject to all regulatory and risk constraints, to optimize earnings and balance sheet resilience
  • Explain the impact of the regulation on bank’s balance sheet in particular the resources of capital and liquidity and how the industry is looking to mitigate this impact
  • Define the primary ALM risks aka the 3 R’s – Run off (liquidity) risk, Rollover (Funding) risk and Replacement (interest rate) risk
  • Interpret the behavioural analysis of the balance sheet to better identify liquidity, funding and interest rate risk
  • Assess Interest Rate Risk in the Banking Book in line with BIS 368 Standards and have greater awareness of best practice for managing it
  • Better mitigate impact of Liquidity Coverage Ratio and Net Stable Funding Ratio
  • Apply best practice to their own Individual Adequacy Assessment Processes for Capital and Liquidity and better harmonise these
  • Better optimise wholesale and non-wholesale liquidity portfolios
  • Identify ways in which the wider business can support the ALM function in dealing with these challenges via, for example, communication and alignment of business incentivisation
  • Derive and apply maturity Funds Transfer Pricing [FTP] curves, adjust for regulatory impact on liquidity and capital and have awareness of the ongoing evolution of FTP methodologies in the industry

Course Content for the 5 days sessions

  1. Definition of Asset-Liability Management
  2. Objectives of modern Asset-Liability Management
  3. Basic ALM explained
  4. Components of Balance Sheet
  5. Components of Liabilities
  6. Components of Assets
  7. Contingent Liability
  8. Banks Profit and Loss Account
  9. Components of Income
  10. Components of Expenses
  11. Asset Liability Management and Significance of ALM
  12. Purpose and Objectives of ALM
  13. Why does ALM matter
  14. Best Practices in ALM
  15. Liquidity Management
  16. Adequacy of liquidity position
  17. Funding avenues
  18. Types of liquidity risks
  19. Statement of structural liquidity
  20. Example of structural liquidity
  21. Addressing mismatches
  22. Strategies
  23. Statement of interest rate mismatch
  24. Maturing gap method
  25. Success of ALM in banks
  26. Requirements for effective ALM practice
  27. Interest rate risk
  28. Sources of interest rate risk
  29. Measurement of interest rate risk
  30. Risk
  31. Nigerian financial Landscape
  32. Case Study
  33. Key Management Variables in Banking
  34. Banking core operating incomes
  35. Major risks
  36. Credit risk sound practices for managing credit risk
  37. Establish an appropriate credit risk environment
  38. Operate under a sound credit granting process
  39. Maintain a credit administration, measurement and monitoring process
  40. Ensure adequate control over credit risk
  41. Credit risk checklist
  42. What is interest rate risk
  43. Where does interest rate risk come from
  44. Regulation
  45. Principles of interest rate risk management
  46. Risk management process
  47. Simple calculation of IRR
  48. Simple approaches
  49. Traditional Gap Analysis and Example
  50. Interpreting the Gap
  51. Problem with Gap Analysis
  52. Gapping and Equity value
  53. Duration based approach
  54. Foreign exchange risk components
  55. Transaction risk
  56. Translation risk
  57. Economic risk
  58. Passive Transaction Risk Management
  59. Natural Transaction Risk Hedging
  60. Market Transaction Risk Hedging
  61. Hedging
  62. Reasons Not to Hedge
  63. Example of translation risk
  64. Financial statement consolidation
  65. Converting at current rate
  66. Converting at historical rate
  67. Hedging Translation Risk
  68. Market Transaction Risk Hedging
  69. Forward market
  70. Futures market
  71. Forward and Money markets
  72. Commodity Risk definition
  73. Equity Risk definition
  74. Liquidity Risk
  75. Asset vs Funding liquidity
  76. Bank liquidity and liquidity risk
  77. How to manage liquidity risk
  78. Bank runs
  79. Deposit insurance
  80. Operational risks
  81. Internal fraud
  82. External fraud
  83. Operational Risk checklist
  84. ALM Processes
  85. ALM Information
  86. ALM Organization
  87. Composition of ALCO
  88. The scope of ALM function
  89. ALCO duties and responsibilities
  90. ALCO membership
  91. Agenda – ALCO meetings
  92. Generic ALM policy
  93. ALCO policy

Target Audience

  • Members of the Asset Liability Committee (ALCO)
  • Treasury professionals
  • Money market and FX traders
  • Management of credit, deposit and other major business units
  • Liquidity investment managers and traders
  • Capital markets teams covering financial institutions
  • Strategic planning professionals
  • Risk managers and risk controllers
  • Financial officers and auditors (internal and external)
  • Regulators overseeing banking, investment and trading books
  • IT professionals specializing in treasury systems
  • Group Treasurers
  • Chief Risk Officers
  • Accounting and Finance Managers
  • Asset Managers
  • Liquidity Managers
  • Risk Managers and Risk Controllers
  • Risk Officers
  • Auditors and Bank Regulators

 

 

.

 

Kigali Rwanda Jul 15 - 19 Jul, 2024
USD 4,500.00
(Convert Currency)

Prof. Richard Mayungbe +2348033467639

Prof. Richard Mayungbe

Related Courses

Reward Management Online and Classroom Course Reward Management Online and Classroom Course

3 days, 18 - 20 Sep, 2024 

2024-09-18 12:09:00 2024-09-18 12:09:00
Ogun State, Nigeria

TSI Limited

Reward is a very important tool in motivating the workforce, hence the need for this training. Participants would be introduced to the total rewards model and each of its components. ...

Public Private Partnership - Project Finance and PPP Training Online and Classroom Course Public Private Partnership - Project Finance and PPP Training Online and Classroom Course

3 days, 16 - 18 Oct, 2024 

2024-10-16 12:10:00 2024-10-16 12:10:00
Ogun State, Nigeria

TSI Limited

The concept of PPP obligates a more collaborative relationship between both sectors, fostered by openness and trust. This presents a major shift from the traditional 'arms-length' approach in ...

Forensic Auditing and Investigation Technique in Procurement Course Forensic Auditing and Investigation Technique in Procurement Course

3 days, 06 - 08 Nov, 2024 

2024-11-06 12:11:00 2024-11-06 12:11:00
Niger State, Nigeria

TSI Limited

Procurement is one of the two most prominent avenue of fraud in an organization, leading the Payroll. The course has been designed to bring an indepth understanding of the theory and practice of ...

Internal Communication Management Course Internal Communication Management Course

3 days, 04 - 06 Nov, 2024 

2024-11-04 12:11:00 2024-11-04 12:11:00
Ogun State, Nigeria

TSI Limited

Great internal communication enables performance, increases engagement, and delivers value to organizations. But if you're new to the internal communication function, if involvement in internal ...