Covers all aspects of the ALM function including interest rate risk measurement and management, liquidity measurement and transfer pricing.
As interest margins become ever tighter, the focus on efficiently and effectively managing the interest rate risk and liquidity risk of your balance sheet has never been more important. In addition, the continuing risk of fixed rate lending is demanding better interest rate management techniques. This course covers all aspects of measuring and managing your interest rate risk using all of the best practice techniques. It covers all aspects of ALM from the operation of the ALCO committee, the measurement and management of interest rate risk, through to reporting to management and Board. In addition, the measurement and management of liquidity risk is covered as an essential component of managing the balance sheet.
Lastly, “transfer pricing” is considered in terms of its use in assisting the pricing committee to determine optimal pricing for products and more importantly, the relative contribution of each product to the institution’s performance.