Asian Banking School

The Alco Challenge: Asset & Liability Management (ALM) for Financial Institutions

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About the course

The banking world is changing fast: digital banking, FinTechs, Final Basel 3 (Basel 4) regulations on capital and liquidity, and regional economic integration. As banks are shifting from an overriding concern for revenue growth to a preoccupation with long-term value creation and risk control, knowledge of Asset & Liability Management (ALM) is becoming a necessity for all bankers accountable for the results of a profit center. ALM includes a set of tools that ensure that strategy, risk-avoidance or risk-taking, pricing, and performance measurement are consistent with the corporate objectives set by senior management and the board and the regulatory constraints imposed by central banks, such as Basel 2 or Final Basel 3.

A unique feature of the programme is to anchor the discussion on a sound bank valuation model that identifies in a transparent manner the drivers of value creation. It forms the basis of the applied book that will be distributed to the participants Bank Valuation and Value-based Management (J. Dermine, Mc Graw-Hill, NY, 2nd edition, 2015).


By the end of the programme, participants will be able to:

  • Develop key performance indicators related to pricing, balance sheet management and off-balance sheet control
  • Identify product profitability, risk factors, capital adequacy, taxation and stock market value
  • Develop strategic pricing in a competitive environment and in-depth analysis of market prospects, teams' strategies and competitive positioning
  • Evaluate modern risk management techniques to cover both credit and market risks
  • Negotiate the pricing of Interest Rate Swaps and the Sale of Loans

Who should attend

  • Senior executives from financial institutions in private banking, corporate, investment banking, retail lending and treasury dealers
  • Members of the asset and liability committee (ALCO), group finance, auditors and risk controls

Trust the experts

Jean Dermine

Jean Dermine is a Professor of Banking and Finance at INSEAD. He holds Doctorat en Sciences Economiques from the Université Catholique de Louvain and Master of Business Administration from Cornell University. He directs the INSEAD Executive Education programmes on Risk Management in Banking and S...


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