# Asset and Liability Management for Banks

> Manage interest-rate, liquidity and funding risk across the balance sheet and run an effective ALCO.

- **Provider:** Afriskora Training Solutions
- **Category:** Banking, Economics & Monetary Policy
- **Duration:** 5 days
- **Formats:** classroom (cities across Africa), live virtual (Zoom/Teams), in-house for teams
- **Certificate:** Afriskora Certificate of Completion, verifiable online
- **Booking:** request dates and a quote; invoice and EFT payment
- **Web page:** https://afriskora.co.za/courses/banking-economics/asset-and-liability-management-for-banks
- **Request dates:** https://afriskora.co.za/request-training?course=asset-and-liability-management-for-banks

## Overview

Asset and liability management protects a bank's earnings and survival when interest rates move or funding dries up. This course explains how to measure repricing and liquidity gaps, model net interest income and economic value, set funds transfer pricing and present clear analysis to ALCO. Exercises use a simulated bank balance sheet.

## Who should attend

- ALM and treasury staff in banks and microfinance institutions
- Risk managers and finance teams
- ALCO members
- Banking supervisors

## Learning outcomes

- Measure interest-rate risk using gap, NII and EVE analysis
- Manage liquidity with ratios, cash-flow ladders and buffers
- Design a funds transfer pricing framework
- Plan funding and contingency strategies
- Prepare effective ALCO packs and recommendations

## Course outline

### Day 1: ALM foundations

- The bank balance sheet and its risks
- ALM governance and the ALCO
- Behavioural assumptions for deposits and loans
- Regulatory requirements

### Day 2: Interest-rate risk

- Repricing gap analysis
- Net interest income simulation
- Economic value of equity
- Hedging with swaps

### Day 3: Liquidity risk

- Maturity ladders
- LCR and NSFR in practice
- Liquidity stress testing
- Contingency funding plans

### Day 4: Funds transfer pricing

- Why FTP matters
- Building the FTP curve
- Liquidity premiums
- Product profitability

### Day 5: ALCO in action

- Designing the ALCO pack
- Balance-sheet strategy
- ALCO simulation
- Action planning