9 Class Hours
Instructor: Edward Krei
Asset & Liability Management examines the responsibilities of a bank’s Asset Liability function from a practical and performance oriented perspective. Topics to be discussed include interest rate risk management, liquidity and funding, pricing decisions, and capital management. The selection and use of NL models, outsourcing decisions, staffing and managing the NL process, and organizational issues will be addressed as well.
Upon completion of this course, the participant should understand the basic financial issues addressed by ALCO and how alternative strategies are effectively assessed and implemented with an objective of maximizing sustained long-term performance while managing risk. Students should gain an understanding of the Asset Liability management process as it relates to assessing and implementing financial and risk management strategies with particular focus on interest rate risk, liquidity risk, funding alternatives, capital management and the securities portfolio.
Students should gain a basic working knowledge of the ALCO process in his/her institution and:
- Understand the fundamental drivers of their bank’s net interest margin and gain appreciation for the challenges of balancing risk management with profitability
- Understand how well managed institutions develop, evaluate and implement financial strategies in a highly competitive market and challenging economy
- Develop an improved perspective about the financial markets and the alternatives that their institution may have in funding their bank and in maintaining adequate levels of liquidity
Annual School Session
First Year Core Course
Financial Management Track