The Treasury and ALM training course provides a comprehensive understanding of treasury operations, money markets, foreign exchange, fixed income, derivatives, bank balance sheets, and risk management techniques. It is designed for individuals who work or are interested in working in the treasury and ALM department of a bank or financial institution. By completing this training course, participants will gain a solid understanding of treasury operations, risk management techniques, and the different financial instruments used in the treasury and ALM department, which will help them make informed decisions, manage risks effectively, and improve their overall performance in the treasury and ALM department
Define the Asset & Liability Management Concept and Driving forces
State the rule of Assets and Liability management in managing the interest rate risk
Determine what are the different approaches for measuring interest rate risk
Explain the rule of Assets and Liability management in managing the L risk. And are the Key Metrics for measuring Banks’ Liquidity
Describe the daily activities of the Treasury back office to provide understanding of treasury function
List the Fundamentals of the Liquidity Risk Management and the liquidity Policy Framework
Explain the Asset and Liability Management Committee (ALCO) Main Mission in the Bank’s asset & Liability Management (ALM) Strategic Overview
Understand the Fund Transfer pricing Methodology, policies, and best Practices
Define Basel III and the main liquidity Ratio Liquidity Coverage Ratio (LCR) & Nest Stable Funding Ratio (NSFR)
Understand and be able to apply spot exchange rate quotations
Recognize basic spot FX dealing terminology and the role of specialist types of intermediaries
Recognize the principal risks in spot and forward FX transactions
Manage the interbank position (USD position against EGP
Understand the fundamentals of options, and recognize the principal classes and types
Understand the terminology, how they are quoted in the market, how their value changes with the price of the underlying asset and the other principal factors determining the premium, how the risk on an option is measured, and how they are delta hedged.
Explain how main risk factors like funding and liquidity risk, market risk (FX, Interest Rate, Equity, Commodity, etc.), credit risk, leverage risk, business risk, and operational risk are interrelated and how they affect the balance sheet of a financial institution
Describe common risk management and hedging techniques which help control these effects and to understand how these techniques are used to set up a state-of-the-art ALM approach
Macro-Economic Indicators
Introduction Monetary Policy
Introduction to the Fiscal Policy
Types of local benchmarks (corridor rate / discount rate / CONIA)
Foreign benchmarks (LIBOR / SOFR / SONIA / ESTR)
Treasury objectives and Functions
Treasury operations model and governance
Introduction and definitions for the different Desks in the Treasury department
The difference between Simple and Compounded Interest Rate
Understanding principles of the time value of money
The Money Market Deposits: To understand the function of the money market, the differences, and similarities between the major types of cash money market instruments and how they satisfy the requirements of different types of borrowers and lender
The main characteristics of the major currencies, and the main Factors affecting Foreign Exchange, The Foreign Exchange spot ‹cross `markets` Calculations: (Spot exchange rate quotations, FX dealing terminology and the role of specialist types of intermediaries, The principal risks in spot and forward FX transactions, Managing the interbank position (USD position against EGP)
Fixed Income:
Main characteristics of Treasury bonds & Bills
Factors of bonds market value.
Derivatives:
Fixed Income
Main characteristics of Treasury bonds & Bills
Factors of bonds market value.
Options:
Fundamentals of options
Principal classes and types
Terminology and how they are quoted in the market
Measuring the risk on an option
Delta hedging
Basic option strategies and their purpose.
Introducing the Bank Balance Sheet:
Describing the items of the balance sheet and understanding it’s major components
Introducing the Principles of Asset & Liability Management
The fundamentals of Asset & Liability Management as a practice of managing and hedging risks that arise due to mismatches between the asset side and the liability side of the balance sheets of a bank
The interrelation between risk factors like funding and liquidity risk, market risk (FX, Interest Rate, Equity, Commodity, etc.), credit risk, leverage risk, business risk and operational risk
The effect of risk factors on the balance sheet of a financial institution
Common risk management and hedging techniques which help control these effects
The usage of risk management and hedging techniques to set up a state-of-the-art ALM approach
Interest Rate Risk Management (Definition, its functions, objectives, and Fund Transfer Pricing):
Interest rate risk is the exposure of a bank›s financial condition to adverse movements in interest rates. Accepting this risk is a normal part of banking and can be an important source of profitability and shareholder value
Fund Transfer Pricing (FTP):
It is a process used in banking to measure the performance of different business units of a bank, mainly the profitability of deposits and loans
Liquidity Risk:
The Maturity Mismatch Analysis and management as measurement tool of the anticipated liquidity of the bank through inflow (Assets) and outflow (Liabilities)
Basel III Indicators
Understanding Basel III liquidity standards:
Liquidity Coverage Ratio (LCR)
Net Stable Funding Ratio (NSFR)
Managing the FX positions and intraday limits and maintaining it within the CBE limits
Chief Risk Officers, Accounting and Finance Managers, Asset Managers, Liquidity Managers, Risk Managers and Risk Controllers, Risk Officers, Auditors and Bank Regulators
