Asset Liability Management (ALM) is the primary source of directors and senior executive grief at bank board meetings. The reporting is standard, the numbers concise but the terminology (despite many years of usage) is still exotic and confusing.
The work that we have done on the live training front as well as here on FinanceTrainingCourse.com confirms it. ALM remains one of our most popular training course as well as the most popular download within our ALM study guide selection of the store. From Nigeria to the US, from Peru to Singapore customers have been downloading our basic ALM excel reporting templates, study guides and videos.
The primary issue board members and other senior bankers have, deal with the confusion caused by terminology as well as the absence of simple examples that illustrate the nature of interest rate mismatch risk. The usual suspects are
1. Modified Duration and interest rate sensitivity
2. The actual, real impact of interest rate mismatch on earnings and shareholder value
3. Monte Carlo Simulation (if used) or Value at Risk
4. Interpreting the ALM report formats and slide deck
Despite our actuarial, treasury and banking background we can completely relate to this and you can see that we have been writing about related issues for a while now.
- Why does bank regulation fail? The Kill a bank in one day simulation
- ALM Banking Models – Introductory Case Study
- ALM Banking Models – Assumptions, Confusion, Tweaks & Hacks
Asset Liability Management iBook came about because the first time we saw our ALM deck it brought us down to tears too. Remembering the language and its application was a nightmare.
Hence the Asset Liability Management (ALM) study guide for board members. Simple, to the point & concise.
It brings the best of our content, text and videos, to the learning platform of the Apple iPad. We have summarized full length interactive videos and study guides from our library to create a short reference tool that you can easily refer to on your commute to work, on your flight or your train ride to your next bank’s board meeting.
The iPad made it possible for us to integrate text and video in an easy to use working format that didn’t take anything away from the content. Study materials were summarized keeping in view the time constraints executive teams face. Videos walk through the context and the frameworks, while the text provides simple examples that illustrate the concept.
Fair warning though. Despite our best efforts a few equations did manage to sneak in. Feel free to ignore them they are only there as a quick reference.
In addition to the simple examples, we also included a few detailed step by step walk through of more detailed calculations for customers who like to get their hands dirty with numbers.
And a convenient, easy to use, between the lines glossary that you can refer to throughout the text.
The biggest joy of working on the iPad are the section by section self assessment quizzes. How do you know if what was covered has actually sunk in. Take the short five minute quiz to test yourself.
With 60 plus pages, 75 minutes of videos, five self assessment quizzes and 21 questions, the ALM guide is an easy to use study reference not just for board members but any student of Asset Liability Management.
And if this isn’t enough, feel free to look through our ALM study guide store to look through our collection of ALM Excel spread sheets, Video lessons and downloadable pdf guides.
The Asset Liability Management iBook for board members is now available for download at the Apple iBook store.