Foundations of Asset Liability Management
In today's dynamic financial landscape, effective management of assets and liabilities is paramount for the success and sustainability of financial institutions. This comprehensive program is designed to equip participants with essential knowledge and practical skills to navigate the complexities of Asset Liability Management (ALM).
The foundations of Asset Liability Management (ALM) encompass the fundamental principles and techniques utilized by financial institutions to manage their balance sheet effectively. ALM focuses on aligning assets and liabilities to mitigate risks and optimize financial performance. This discipline involves analyzing interest rate risk, liquidity risk, and other factors that impact the institution's financial health. By understanding the core concepts of ALM, institutions can make informed decisions to ensure stability and sustainability in a dynamic economic environment.
By the end of the training, you will be able to:
- develop a comprehensive understanding of ALM;
- develop a basic knowledge of the different concepts.
Total price *
Members: € 460
Non-members: € 555
Partners/ BZB: € 460
Incompany: tailor-made, prices on request
* Price: service in the context of continuing professional training, exempt from VAT
Please let us know you're interested in this training should there be no date available, the planned date does not suit you and/or this session is full. As soon as about 5 people are registered on the interest list, we will propose a new course date. Your registration on the interest list is free of charge and without any obligation.
Target group
This training course can be followed by multiple target groups:
- professionals in finance and banking;
- legal and compliance officers;
- business analysts;
- anyone interested in gaining insights into ALM;
- .…
Required prior knowledge
Basic level training: this training requires no prior knowledge and covers the basics of the subject.
Programme
CONTENT
- Essentials of Banking
- Basics of banking
- Principles of Asset Liability Management (ALM)
- Management of the balance sheet
- Drivers of bank returns
- Fundamentals of interest rates
- Importance of inflation
- Mechanics of deposits, zero coupon bonds (ZCB), coupon bonds (CB), and Floating Rate Notes (FRN)
- Analysis of interest rate risk
- Limits of duration
- Financial derivatives
- Usefulness of financial derivatives
- Basics of forwards
- ABC of options
- Distinction between money market and capital market derivatives
- Hedging the duration gap
- Comparison of duration gap between banks and insurance companies
- Use of derivatives in managing interest rate risk
- Implementation of macro hedge with bond futures, options on bond futures, and interest rate swaps
- Case study: analyzing the missteps of silicon valley bank
PRACTICAL INFORMATION
- Duration: 1 day of training (6 class hours)
- Hours: 09:00 to 17:00
- Location: Febelfin Academy: Phoenix building, Koning Albert II-laan/Boulevard du Roi Albert II 19, 1210 Brussels
- Language: This training will be given in English
Methodology
You follow a ‘Classroom training’ in a group. You, the other participants and the teacher are all present in the same classroom at an agreed time. There is an opportunity for interaction and feedback, both from the participants to the teacher and vice versa. The teaching material consists as a basis of a presentation via the MyFA learning platform, supplemented with various other items (such as digital syllabus, presentation, audiovisual fragments, etc.).
Training meterial: PowerPoint presentation (slides).
Teachers
Alexandre Deveen
Retail banking
Risk, finance & treasury
Private banking & asset management
