Do you know what accounts for around 90% of revenue in most banks? The answer is net interest income.
After the financial crisis, interest rates dropped to record lows and have stayed there for almost six years. Now that the economy has slowly returned to health, rates are on the rise, and the precious net interest income in banks is at risk. Asset liability management (ALM) is the management of this interest rate risk, and understanding the basics is vital no matter what your job function is in the bank.
• Defining asset liability management
• Why is it so important?
• The basic tools of asset liability management
• Using asset liability management to drive bank strategy
• Recognizing how asset liability management fits with other bank functions
• Understanding the risks banks face from changing interest rates
• How pricing decisions impact both risk and profitability
• The importance of investing time and effort in measuring interest rate risk
Who Should Attend
• Financial Officers
• Asset Liability Management staff
• Risk Managers
• ALCO Committee Members
• Branch Staff