Beacon FinTrain

Provides an array of professional business and financial training services that stem from improving a corporate's treasury workflow —all the way to efficient, finance training programs.

Course Overview

Fund Transfer Pricing (FTP) and Asset Liability Management (ALM) are fundamental concepts in the field of financial management. This course provides a comprehensive understanding of these essential banking practices and their critical role in the effective management of financial institutions. Participants will delve into the principles, methods, and applications of FTP and ALM to make informed financial decisions, optimize asset and liability management, and enhance the overall performance of financial organizations.

For More Inquiries

Jihad Hassan

Financial Learning Advisor TL

 +201278655721

 g.hassan@beacon.com.eg

Jihad Hassan

Financial Learning Advisor TL

 +201278655721

 g.hassan@beacon.com.eg

Course Outcome

Discuss an essential domain in bank management.

Define the transfer price for all risk classes.

Define cost accounting and allocation

Explain the Transfer Pricing concept and be able to enhance their role in the ALM and/ or MIS activities of the banks.

Course Outline

ALM Foundation :ALM Foundation

Introduction

  •     ALM framework and organization
  •     Product characteristics
  •    The YC as a price benchmark

IRRBB

A. Sources and effects of IRR
B. General compliance (Basel 4) constraints
C. Profit sensitivity models
•Repricing gap
•New Basel Model constraints
D. Value sensitivity models
•Average Life v. Duration
•Applying the Duration approach (equity sensitivity, limits, compliance)
E. Statistical models: Value at Risk (VaR) Sources
Liquidity  Risk

A. General Aspects of Liquidity Risks and Definitions

B. Risk quantification models
•Maturity gap
•Traditional liquidity ratios v. Basel 3 Ratios (LCR & NSFR)
•Central Bank RRR

C. Liquidity Management Strategies

3.Case Study
A. From a simplified financial statement, calculate:
  •    The IRRBB sensitivity of the bank
  •    The liquidity sensitivities of the bank
  •    Compare to strategy limits
  •     Define risk management strategies
FTP Session :FTP Session

Introduction

A. Overview of Financial Product Pricing variables and related policies and strategies

B. A pricing exercise

C. Cost Accounting: Decomposition of product profitability into:

•Operational cost allocation (Cost Allocation)
        o What are cost accounting and cost allocation
        o The reasons for and uses of cost transfer pricing
        o Examples for (1) profitability analysis, (2) pricing  analysis
•Financial Risk cost allocations (FTP)
o The central role of ALM in Financial transfer pricing
o Fund Transfer pricing or Risk Transfer Pricing (FTP or RTP) in Banking
o Objectives and scope of Risk Transfer pricing
o Case Study MCB
Cost Allocation: mythologies
A. Scope and cost allocation approaches
B. Traditional cost apportionment
C. Activity-Based Costing
D. Cost Allocation Case Study
Risk Transfer Pricing Principles :Risk Transfer Pricing Principles

Interest Rate Risk (IRR) Transfer Pricing

A. IRR costing and management principles
B. Exercise: implementing the main FTP models

Credit Transfer Pricing

A. Credit risk costing and management principles

B. Risk Rating, Probability of Default, and Expected Loss calculations


Who Should Attend

All
staff that are involved in:

·The
use and/or calculations of transfer pricing,

·Staff
defining and using product pricing,

·The
profitability and performance analysis,

·MIS
and management accounting

·Banking
managers.

Register For Next Orientation Session

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