Asset and Liability Management

In this course, participants will learn the basic elements of bank financial statement analysis and the role and impact of asset/liability management in executing bank strategies and enhancing bank profitability. This course will also cover the time value of money, the risk-return trade-off, liquidity risk, and interest rate risk, as well as the regulatory framework with regard to capital adequacy and Basel II.

Target Audience:

Bank staff in the following departments: credit analysis, marketing, risk management, internal audit and compliance, treasury and back office, financial control, information technology and MIS.

Objectives:

• Identify the main characteristics of bank financial statements and describe
• key bank financial performance ratios.
• Explain Asset/Liability Management (ALM) and its relationship to strategic
• planning, profit planning, daily bank financial activities and the functions and tasks of the Asset/ Liability Committee (ALCO)
• Explain the basic concepts of time value of money (TVM), risk-return trade-off (RRT) and the valuation of common financial instruments
• Describe the basic elements of liquidity risk management
• Explain the basic elements of interest rate risk management
• Identify the new regulatory environment with regard to capital adequacy and Basel II

Assessment Strategy:

Participants will be informally assessed on their interaction during sessions and their Participation in exercises in addition to end of course exam.