Bank Asset & Liability Management - MIA - Home M1314.pdf · Bank Asset & Liability Management Tower Training Centre Swatar ... Banks operate in the market for money and the price

Event title

Bank Asset & Liability

Management

Tower Training Centre Swatar

Patrick Spiteri Swain

Registration

14.15

Time 14.30 - 17.45 Including a 15 minute coffee break

Tue 28 & Thu 30 May 2013 CPE hours

6 Core

The Malta Institute of

Accountants

CPE 2013

M1314

Event title

B anks are exposed to a number of risks. In the case of asset and liability management, the prime focus is

on liquidity and interest rate risk. These risks stem from asset and liability mismatches in a bank’s Statement

of Financial Position.

In carrying out their intermediary role in financial markets, banks provide a maturity transformation function.

This is required because most bank creditors have a preference for short-term deposits, whilst bank debtors

would require funding for a longer duration. Consequently, banks must accept and manage liquidity risk due

to the maturity mismatch between their assets and liabilities.

Banks operate in the market for money and the price of money is the interest rate. The problem is that there is

no one unique interest rate as there are different benchmark rates and tenures for borrowing and lending

transactions. Consequently, the net interest margin earned by banks, which is the core operating income, is

exposed to two types of interest rate risks. These are mismatches in the re-pricing of liabilities and assets and

also mismatches in the movement of different benchmark interest rates.

Objectives

The objective of the course is to discuss the discipline of bank asset and liability management and how this is

evolving in response to the financial crises of the recent years. It will provide a practical insight into industry

standard techniques used to identify and mitigate liquidity and interest rate risks. The course will also look at

topical regulatory issues related to the subject.

Topics on Agenda

Session 1: Liquidity Risk

Reliability of funding

Wholesale against retail funding

Stickiness of retail funding

Asset as a store of liquidity

Marketability of assets

Assets as collateral

Regulatory aspects on liquidity

Session 2: Interest Rate Risk

Term structure of interest rates

Interest Rate gap analysis

Managing interest rate sensitivity

Asymmetrical movement in interest rates

Basis risk

Duration

Modified Duration and fair value sensitivity

Convexity

Duration of Equity

Regulatory aspects on interest rate risk

Who will Benefit

This course is relevant to Bank Treasurers, Financial Controllers, Risk Managers, Auditors and Bank Regulators.

Trainer’s Profile

Patrick Spiteri Swain qualified from the University of Malta with a Bachelor of Accountancy (Hons). Other

qualifications held are ACIB, MSc Financial Management (London).

Patrick works in financial management, specialising in financial risk management, fixed-income portfolio

management and bank asset and liability management.

Event title

Participation Fee

MIA Members: €65.00

Retired MIA Members: €20.00

Non-MIA Members: €130.00

ACCA & University Students: €32.50

The fee covers: 6 hours of Structured CPE, coffee and the presentation in hard copy format.

After the event participants can download a soft copy of the presentation from the Institute’s website by:

Logging into the system using the username and password

Proceed to the ‘My Purchases’ tab and click on the event title

Downloading the presentation from the Secure Files Section at the bottom of the page

Certificate of Attendance

A certificates of attendance will be issued at the end of the course. This is for your own CPE records. Booking & Payment

To ensure that your event materials and catering requirements are able to be provided at the event, please

register by 17.00 one working day prior to the event.

Individual bookings: Place your booking and pay online through the MIA website.

Group bookings & Retired Members: Fill in the registration form and send it by post along with payment. The

booking will be processed and confirmed once payment is received.

If you believe that the cheque will not reach the Institute by the closing date, then you are kindly requested

to send the application form by e-mail together with a scanned copy of the cheque and present the

respective cheque during the event.

Parking

Participants may use the parking facilities available at Level -5.

Terms & Conditions This is a multi-session event and participants are required to attend both sessions.

Cancellations for both sessions taking place within 48 hours prior to the event, will incur a cancellation fee of

50% unless a name of a replacement delegate is provided.

Due to the nature of this program, no refund/credit will be given after the program commences unless the

cancellation is related to health reasons. In this case the Institute will be able to issue a credit note for the full

amount given that the participant notifies the Institute by 9.00 of the course date.

No refunds in case of no-shows. Payment in full will still be due.

For more information

Ms. Sarah Bonello & Ms. Kirsten Micallef

The Malta Institute of Accountants, Suite 4, Level 1, Tower Business Centre, Tower Street, Swatar

Tel: 2258 1900, E-mail: [email protected], Website: www.miamalta.org

CPE Requirements

Annual Requirements: Minimum of 20 hours Structured, 5 hours Unstructured

3-year Rolling Period: Minimum 75 hours Structured of which 30 must be Core, 45 hours Unstructured