Asset and liability management has undoubtedly become one of the most crucial disciplines for any Bank to master. A comprehensive understanding will result in increased profitability and shareholder value. In addition, the ever increasing need to comply with complex regulatory and audit requirements highlights the call for Banks to better perform at recognizing and managing their Balance Sheets. Moreover, subsequent prudential and regulatory responses that followed the crisis entirely renewed the way in which Asset Liability Management (ALM) is run.
In the same context, considering the current climate is loaded with regulatory and market changes, Funds Transfer Pricing (FTP) frameworks must be adapted in such a way to account for this without losing competitive edge. In small Banks, funds transfer pricing (“FTP”) processes are often automatically managed as ALCO members are the same ones who make key decisions about balance sheet composition and product structure (maturity terms, embedded options, break funding). In larger institutions, these various functions are generally not embodied in the same personnel. FTP serves as the linkage between product design and ALM. Any shortcomings in the FTP processes will result in incomplete or ineffective risk transfer from the product managers to corporate treasury. As a result, product managers are incented to structure and price products inefficiently. Further, treasury’s perception of balance sheet risk is inconsistent with actual risk exposures.
This workshop provides the perfect balance between theory and practice, focusing on all the key methodologies employed within ALM as a discipline. It will provide a practical insight into industry standard techniques and topical regulatory issues. The present workshop will provide Banks and regulators with a platform to learn from practical examples of how others are already incorporating the liquidity and capital regulations into their FTP models and within their ALM strategy as well as insight into future developments. The workshop is of great value to risk management and financial management teams, risk supervision teams and banking professionals seeking an interactive and simulations-based workshop to gain broader exposure to international best practices in ALM and FTP.
Prometeia will sponsor the event.
Massimo Pedroni - Head of International Business, Prometeia
A partner in Prometeia since 2015 and head of the International Business Practice since 2014, he coordinates the activities of the overseas branches of the Group based in London, Istanbul, Moscow, Beirut and Lagos. A graduate with honours in Banking Economics from the University of Modena in 2000, he completed a Master’s in Finance at London University. Before returning to Prometeia, he worked for KPMG and Lloyds TSB in London as head of the Model Governance & Validation department. His many years of experience as a Risk Management consultant have seen him work in over fifteen countries, managing major projects in Austria, Germany, Russia, Turkey, Central-Eastern Europe and the Middle East.