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