Background:
Asset Liability Management (ALM) and Liquidity Risk Management are integral component of a sound risk management framework. Maturity transformation, a core feature of financial intermediation, exposes Banks/NBFCs/FIs to liquidity and interest rate risks. Historically, regulatory frameworks placed a greater emphasis on the asset side of the balance sheet focusing on credit risk and capital adequacy. However, post Global Financial Crisis, the need and importance of liquidity and funding risks gained prominence, leading to regulatory / supervisory oversight beyond asset-side vulnerabilities. The policy response led to prescribing comprehensive global liquidity standards like Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) aimed at building resilience in financial institutions. Strategic management of assets and liabilities is crucial to optimize profitability, improve liquidity and protect a financial entity against various risks.
Objective:
This program aims to deepen participants’ understanding of asset liability mismatch, liquidity and funding risks, solvency implications and regulatory expectations. Through expert-led virtual sessions and interactive discussions with regulators and practitioners, the programme will help strengthen institutional capacity for effective balance sheet and liquidity risk management.
Program Highlights:
- Asset Liability Management – Issues and Challenges
- Managing Liquidity Risk
- Liquidity Risk and Solvency
- ALM & Strategic Balance Sheet Management
- Risks due to interlinkages
- Classification & Valuation of Investment Portfolio and Interest Rate Risk in the Banking Book