Strategic Bank Management and ALM

  Intermediate CPD: 21 hours   3 days   Live


Strategic Bank Management and ALM

In an ever more complex and riskier world, the Strategic Bank Management and ALM seminar will help participants achieve the critical edge.

Never before has it been so important for bankers – at all levels and in all roles – to understand the complexities of banking in the 21st century, to be aware of how their role fits in, to comprehend the big picture, and to identify problems before they become serious.

Participants will learn to recognise the wider impact of their actions and will be able to apply more astute judgement in the execution of their decisions. Instead of a blinkered outlook, participants will have a panoramic view. Instead of copying the competition, participants will devise creative strategies. Instead of reacting to problems, participants will identify potential obstacles and implement pro-active tactics to circumvent them. In short, participants will be able to make better, more profitable, but safe decisions, to the material advantage of the bank.

The Strategic Bank Management seminar does just that. Using ACF’s sophisticated Global Banker simulation within a realistic and detailed scenario, the seminar shows participants how to develop effective solutions to today’s problems and strategies to ensure that their bank maintains profitability.

Learning Outcomes

Over an intensive three-day period, participants will:

  • Obtain a detailed overview of total bank operations – seeing clearly how everything fits together
  • Appreciate the impact of Basel III on commercial bank operations
  • Establish how to restore profitability through the design and execution of successful strategies – taking into account the need for liquidity and the cost of capital in a Basel III world
  • Identify and analyse a bank’s exposure to the various sources of risk – and how to design strategies to control risk within acceptable bounds
  • Appreciate the dynamics of commercial banking – exploring the interactions between funding, lending, liquidity, and capital
  • Assess how derivatives like interest rate swaps and credit default swaps can enable banks to manage their exposure to interest rate and credit risk
  • Explore how successful securitisation can help banks manage their balance sheet
  • Understand asset and liability management concepts – and how they affect day-to-day decisions throughout the bank
  • Broaden the breadth and depth of their banking knowledge – learning about and gaining first-hand experience within each major area of the bank

Who Should Attend

Anyone working at management level within a commercial bank, those working in ALM, credit, treasury, strategy. In addition, central bank regulators and anyone else responsible for banking supervision at national, regional, or state level.



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Seminar Content

Balance sheet structures
  • On- and off-balance sheet accounts
  • Interest rate risk measures
  • Securitisation
  • Regulatory ratios
  • Capital adequacy
  • Liquidity
  • ALM concepts
  • Integrating total bank operations – credit, finance, trading, treasury and risk management
  • Hot Topic: The importance of credit risk, liquidity, and capital in today's environment
Risk Management
  • Identifying banking risks
  • Credit risk: Exposure from traditional lending, Exposure through credit derivatives like CDS and CDO
  • Liquidity risk – Analysing the need for liquidity – Providing liquidity, asset-based and liability-based alternatives
  • Interest-rate risk: Maturity mismatch, Gap risk, Yield-curve risk
  • Currency risk
  • Duration risk
  • Operational risk
  • Quantifying risk exposures
  • Controlling risk through pro-active risk management
  • Hedging techniques using derivatives
  • Integrating and combining risks
  • The Value-at-Risk (VaR) approach
  • Topical issues: Measuring risk under crisis conditions – Combining credit risk and market risk
  • Hot Topic: Measuring risk in a stressed environment – beyond the VaR approach
  • Measuring profitability: RoA vs. RoE
  • Risk-adjusted returns
  • Capital-adjusted returns
  • Risk-return trade-off
  • Impact of capital and liquidity requirements on bank profitability
  • Cost of implementing hedging programs
  • Hot Topic: Returning to and maintaining profitability
Lending Policy
  • Credit risk and its impact
  • Risk assessment
  • Establishing acceptable levels of risk-adjusted return
  • Using credit derivatives to manage credit risk exposure
  • Achieving the right lending mix
  • Retail vs. corporate
  • Syndicated loans
  • Floating-rate vs. fixed-rate
  • Pricing
  • Marketing
  • Hot Topic: The importance of credit risk management in today's environment
Liquidity, Financing Policy, and Basel III
  • Retail vs. money-market funding
  • Over-dependence on the money-markets – the problem
  • Liquidity risk from market funding
  • Competing for retail deposits
  • Marketing
  • Minimising costs of money market funding
  • Timing
  • Liquidity
  • Basel III and the new liquidity ratios: Liquidity Coverage Ratio, Net Stable Funding Ratio
  • Hot Topic: How much will the Basel III liquidity rules affect my bank?
Treasury Management
  • Using money-market instruments – bills, CDs, commercial paper and bonds
  • Using derivative instruments – futures, options, FRAs and swaps
  • Controlling risk
  • Managing cash flows and liquidity
  • Investment management
  • Hot Topic: Investing in liquid assets when Treasury rates are low
Capital Management
  • Raising capital
  • Debt vs. equity vs. hybrid instruments
  • Floating-rate vs. fixed-rate debt
  • Callable bonds
  • Convertibles, equities
  • Measuring the cost of capital
  • Capital allocation
  • Securitisation of assets
  • Hot Topic: Raising capital – what is the best choice?
Capital for Credit, Market, and Operational Risk – Basel I through Basel III
  • Basel I
  • Tier One, Tier Two, and RWA
  • Basel II
  • Pillars I, II, and III
  • Menu of approaches
  • Standardised vs. Internal Ratings Based (IRB) approaches
  • Foundation vs. Advanced IRB approaches
  • Using internal credit models
  • Allowance for credit risk mitigation
  • Use of credit derivatives
  • Collateralisation
  • Operational Risk
  • Basel III
  • The new capital and leverage ratios
  • The Capital Conservation Buffer
  • The Countercyclical Buffer
  • The Market Risk Amendment
  • Using internal market risk models
  • The multiplier: yellow and red cards
  • Hot Topic: How does Basel III affect my bank?

When and Where
   22 Feb 2023 - 24 Feb 2023
   New York
   Treasury and ALM

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Other Dates and Locations
Check our course schedule for alternative dates and locations where this course is offered.



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