Governments policy response to the coronavirus crisis has impacted the entire economy and the risk of a deep recession is high. Banks face multiple challenges meeting the needs of their customers, many of whom now face severe hardship, as well as operating in a negative sentiment market environment.
The challenge is greatest for the bank’s Treasury and ALM function, which has to ensure smooth functioning of cash, liquidity and lending provision as well as remain within regulatory compliance. This five-part online workshop presents an overview of the current conditions as well as a short-term and medium-term Treasury action plan to ensure best-practice ALM.
There is also a review of revised objectives for a bank’s asset-liability committee (ALCO) as part of its remit to maintain balance sheet robustness and assist the business lines customer franchise.
Delegates will gain a clearer understanding of how to adapt their balance sheet risk management practice to ensure it remains fit-for-purpose during the coronavirus crisis.
This course provides in-depth coverage of best practice in balance sheet asset-liability management, capital and liquidity risk management. It covers the latest regulatory developments and their impact on balance sheet risk management practice, and includes a checklist of best-practice principles to follow to ensure regulatory compliance and balance sheet optimisation.
BY THE END OF THIS COURSE YOU WILL BE ABLE TO:
- Implement an adaptable and flexible action plan for ALCO and the balance sheet that addresses risk management and customer requirements during the Covid-19 stress period
- Implement best-practice capital management and capital adequacy assessment (ICAAP) and Recovery Plan processes
- Implement best-practice liquidity risk management and liquidity adequacy assessment processes (ILAAP) and optimised liquid asset buffer (HQLA) practice
- Ensure compliance with regulatory requirement on interest-rate risk in the banking book (IRRBB), including IRR metrics and Pillar 2 capital impact
- Apply best-practice asset-liability committee (ALCO) governance framework and operating model
- Lecture 1: Navigating Treasury and asset-liability management thru the Covid-19 stress: Short- and medium-term Treasury action plan
- Lecture 2: Capital Management and ICAAP and risk appetite statement review
- Lecture 3: Liquidity Risk Management, ILAAP and optimising the High Quality Liquid Asset (HQLA) portfolio
- Lecture 4: Interest-Rate Risk in the Banking Book (IRRBB)
- Lecture 5: Best practice ALCO Governance Framework
Professor Moorad Choudhry is an Independent Non-Executive Director on the Board of Recognise Financial Services Ltd. Previously he was Treasurer, Corporate Banking at The Royal Bank of Scotland, Head of Treasury at Europe Arab Bank, Head of Treasury at KBC Financial Products and vice-president in structured finance services at JPMorgan Chase Bank. He began his career at the London Stock Exchange in 1989.
At KBC FP Moorad led the team that designed, originated and structured Picaros Funding LLP, the world’s first multi-SPV synthetic asset-backed funding vehicle, and later winner of the Euromoney Structured Finance Deal of the Year award for 2005.
Moorad is a Fellow of the Chartered Institute for Securities & Investment, a Fellow of the Institute of Directors, a Fellow of the London Institute of Banking and Finance and a Freeman of the Worshipful Company of International Bankers. He is on the Editorial Boards of the Journal of Structured Finance, Qualitative Research in Financial Markets, and American Securitization. He is author of The Principles of Banking.