Bank Asset-Liability Management: A 3-day guide through the key areas of bank ALM

Basel III and Basel 3.1 implementation is now nearing its final stages and banks need to adopt an integrated, optimized approach to balance sheet management in order to satisfy the sometimes competing demands of the regulator, the customer and the shareholder, and to preserve shareholder value efficiency. Efficient and effective asset-liability management (ALM) practice is the primary part of this process.

This 3-day workshop guides participants through the key areas of bank ALM: integrated ALM origination framework, capital management, liquidity risk, Funds Transfer Pricing (FTP) and interest rate risk in the banking book (IRRBB). It addresses both the challenge of implementing an efficient regulatory submissions process (ICAAP and ILAAP), to ensure that a bank is able to implement best-practice processes, and the “3-dimensional” optimization problem of meeting the requirements of all stakeholders.

Material from the instructor’s books The Moorad Choudhry Anthology and The Principles of Banking is used in the workshop. Case studies and group exercises are used throughout the course to reinforce learning.

How you will benefit

• Implement best-practice ALM processes
• Ensure effective and best-practice ICAAP and ILAAP processes
• Apply strategic ALM discipline to ensure an optimized balance sheet in Basel III implementation
• Implement an integrated liabilities strategy that will optimize the liability structure while enabling efficient compliance with NSFR and LCR
• Manage the balance sheet efficiently to account for new capital regulations such as Leverage Ratio
• Ensure IRRBB is managed efficiently to maximize hedge effectiveness and to minimize the regulatory capital charge
• Apply best-practice FTP processes into origination strategy to maintain effective balance sheet management
• Adopt an effective ALCO operating framework and governance mechanism that delivers an efficiently managed balance sheet

Faculty

Professor Moorad Choudhry is a non-executive director at Newcastle Building Society.

He was latterly Treasurer, Corporate Banking Division at The Royal Bank of Scotland. Moorad is a Fellow of the Chartered Institute for Securities & Investment, a Fellow of the London Institute of Banking and Finance, a Fellow of the Global Association of Risk Professionals, a Fellow of the Institute of Directors and a Liveryman of The Worshipful Company of International Bankers. He is author of The Principles of Banking (John Wiley & Sons 2012, 2023). 

Moorad was educated at Claremont Fan Court school in Surrey, University of Westminster and University of Reading. He obtained his MBA from Henley Business School and his PhD from Birkbeck, University of London.