Executive training
Banking Treasury and Balance Sheet Management
Tailored programmeA practitioner programme on how banks manage their balance sheets: capital, liquidity and funding, and interest rate risk in the banking book.
Outcomes
What participants gain
A deep understanding of how to manage a bank's balance sheet: capital, liquidity and funding, and interest rate risk in the banking book.
The ability to recognise the practical problems arising from these risks, and to solve them.
Applying the regulatory context of bank balance sheet management and the governance process that results.
Programme structure
Five modules
- Module 1
Introduction to Banking, Treasury and Asset & Liability Management
What banks do, the markets they operate in and the risks they run, and how the treasury function mitigates those risks.
- •Banks, the nature of banking and money creation
- •Wholesale markets, yield curves and market infrastructure
- •Bank financial statements and performance metrics
- •The role of Treasury: “the bank within the bank”
- •Central banks, monetary policy and bank regulation
- Module 2
Capital Risk Management
What capital is, why it matters, and how much capital banks need through regulatory, leverage and stress-testing lenses.
- •Purpose and forms of capital, and the creditor hierarchy
- •Basel I to Basel III, capital buffers and the leverage ratio
- •Pillar 1 requirements and RWA management
- •Capital planning, ICAAP, SREP and disclosure
- •Recovery, resolution and MREL
- •Enterprise-wide stress testing
- Module 3
Liquidity and Funding Risk
The nature of liquidity and funding risk, how it is measured and managed, and the regulatory standards banks must meet.
- •Liquid assets and the stability of liabilities
- •Intraday liquidity and cash management
- •Measuring and managing short-term and structural funding risk
- •Behavioural assumptions and their limits
- •LCR, NSFR, ILAAP and the ALCO process
- •Funding plans, contingency funding and stress testing
- Module 4
Market Risk in the Banking Book
Why interest rate risk in the banking book matters for net interest income, and how it is quantified, hedged and governed.
- •Yield curve, basis and option risk
- •Gap analysis, interest rate swaps and structural hedging
- •FX risk and credit spread risk in the banking book
- •Hedge accounting and hedging practicalities
- •Value and income sensitivity metrics
- •IRRBB regulation, ALCO reporting and risk appetite
- Module 5
Integrated Asset and Liability Management
Bringing it all together: how balance sheet management is organised, governed and valued in today's regulatory environment.
- •Organising liquidity, funding, capital and market risk together
- •Funds Transfer Pricing
- •Financial planning and analysis in bank treasury
- •Designing a modern balance sheet management system
- •Structural reform, governance and bank business models
- •Bank valuation
Tailored to your organisation
Interested in this programme?
This programme is delivered for banks and financial institutions and shaped around your needs. Content, depth, format and timing are agreed with you before delivery.
As this is a tailored programme, registration is by enquiry. Contact our team and we will discuss your requirements.