Objectifs
Fundamental Understanding of ALM
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Understand the concept and importance of Asset and Liability Management (ALM) in financial institutions
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Identify the main components of a bank’s balance sheet (assets, liabilities, equity)
Mastery of Balance Sheet Structure
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Analyze the structure of a financial institution’s balance sheet
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Understand the maturity structure of assets and liabilities
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Identify mismatches between assets and liabilities (gaps)
Interest Rate Risk Management
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Understand interest rate risk and its sources
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Measure exposure using: Gap analysis ; Duration and modified duration
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Evaluate the impact of rate changes on:
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Net Interest Income (NII)
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Economic Value of Equity (EVE)
Liquidity Risk Management
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Understand the concept of liquidity risk and its causes
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Analyze liquidity gaps and funding mismatches
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Learn regulatory liquidity ratios:
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LCR (Liquidity Coverage Ratio)
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NSFR (Net Stable Funding Ratio)
Financial Crisis Analysis
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Analyze past financial crises and their impact on liquidity and solvency
Practical Case Studies
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Work on real-world case studies:
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Bank liquidity stress scenarios
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Interest rate shock simulations
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Interpret results and propose actionable recommendations
Candidates
🏦 Bankers, ALM managers, treasurers, and financial planning managers
💼 Financial analysts, risk managers, treasurers, management controllers
🎓 Students and recent graduates in finance and banking
Prerequisite
Basic understanding of banking, mathematics and computers science
Knowledge of accounting principles
Basic understanding of finance
Importance of an ALM Course
· Strengthens financial stability
Helps institutions anticipate and manage risks that could threaten their survival, especially during liquidity or interest rate shocks.
· Improves risk management capabilities
Enables professionals to effectively manage interest rate risk, liquidity risk, and market risk using modern tools and techniques.
· Prevents financial crises and bank failures
Poor ALM practices are often at the root of banking crises; this course equips participants to detect early warning signals.
· Ensures regulatory compliance
Helps institutions align with international standards set by the Basel Committee on Banking Supervision (Basel III), especially on liquidity and capital requirements.
· Enhances liquidity management in crisis contexts
Particularly critical for countries facing liquidity shortages, enabling institutions to better plan and survive stress scenarios.
· Bridges theory and practice
Combines financial theory with real-world applications, making it highly relevant for banks, insurance companies, and regulators.