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Asset and Liability Management in Banks

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Asset and Liability Management in Banks

T1657

Madrid (Spain)

12 Oct 2026 -16 Oct 2026

5830 €

Overview

Introduction:

Asset and Liability Management (ALM) is a strategic banking discipline that enables financial institutions to manage balance sheet risks, optimize profitability, maintain liquidity, and ensure long term financial stability. It integrates balance sheet management, liquidity risk, interest rate risk, funding strategies, capital management, funds transfer pricing (FTP), regulatory compliance, and governance frameworks to support sound financial decision making. This training program explores ALM principles, balance sheet optimization methodologies, risk measurement techniques, and strategic treasury practices. It provides an institutional perspective on how effective ALM strengthens financial resilience, enhances regulatory compliance, and improves sustainable banking performance.

Program Objectives:

By the end of this program, participants will be able to:

  • Analyze asset and liability management principles and balance sheet optimization frameworks.

  • Evaluate liquidity, interest rate, funding, and market risk management methodologies.

  • Assess funds transfer pricing, portfolio management, and financial performance strategies.

  • Examine regulatory, governance, and capital management requirements supporting ALM.

  • Explore strategic ALM approaches that strengthen financial resilience and banking performance.

Target Audience:

  • Bank Treasurers and ALM Professionals.

  • Risk Managers and Compliance Officers.

  • Financial Analysts and Portfolio Managers.

  • Regulatory and Policy Advisors.

  • Banking Executives overseeing Financial Strategy.

Program Outline:

Unit 1:

Strategic Foundations of Asset and Liability Management:

  • Asset and liability management principles and objectives.

  • Balance sheet management frameworks.

  • Basel III and regulatory capital requirements.

  • Return on equity (ROE) and balance sheet optimization.

  • ALM governance and strategic decision making.

Unit 2:

Balance Sheet Risk and Gap Management:

  • Maturity and repricing gap analysis.

  • Interest Rate Risk in the Banking Book (IRRBB) and Credit Spread Risk in the Banking Book (CSRBB).

  • Liquidity risk management under LCR and NSFR.

  • ICAAP, ILAAP, and recovery planning frameworks.

  • Behavioral modeling and balance sheet assumptions.

Unit 3:

Funds Transfer Pricing and Portfolio Management:

  • Funds Transfer Pricing (FTP) principles.

  • FTP methodologies and pricing frameworks.

  • Portfolio profitability and performance measurement criteria.

  • Balance sheet optimization through FTP.

  • FTP governance and management reporting.

Unit 4:

Market Risk and Hedging Strategies:

  • Foreign exchange risk management.

  • Interest rate risk management techniques.

  • Interest Rate Swaps (IRS) and Cross-Currency Swaps (XCCY).

  • Structural hedging frameworks.

  • Treasury derivatives and balance sheet risk mitigation.

Unit 5:

Advanced Asset and Liability Management Strategies:

  • Capital optimization and funding strategies.

  • Structural balance sheet management.

  • TLAC, MREL, Basel IV, and emerging regulatory developments.

  • Digital transformation and analytics in ALM.

  • Strategic balance sheet resilience and long-term ALM optimization.