Asset & Liability Management - Part I

There are inherent mismatches that arise between assets and liabilities on a companies balance sheet. The idea of asset and liability management is to minimise the risks that are caused due to mismatches between assets and liabilities. This pathway will walk you through some of the basics of ALM.

Pathway

Banking

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7 videos • 1 hour 53 minutes

How a Bank Works
Maturity Transformation Explained
In this video, Moorad introduces the concept of maturity transformation before moving onto how to understand, use and analyse the yield curve.
Moorad Choudhry • 25:09
How a Bank Works
Bank Capital and Liquidity
Tim explains the difference between Bank Capital and Bank Liquidity - a critical distinction that is all too often misunderstood.
Tim Skeet • 14:31
How a Bank Works
Risk-weighted Assets Introduction
Moorad explains the purpose of risk-weightings, how they work and how they are assigned and applied.
Moorad Choudhry • 11:05
How a Bank Works
Principles of Bank Liquidity Risk Management
Effective liquidity risk management is imperative for any bank that wishes to continue in business on a sustained basis. Here, Moorad introduces the concept of liquidity risk and the principles of sound liquidity management before considering more technical details and regulatory requirements.
Moorad Choudhry • 19:45
How a Bank Works
Regulation
Risk
Liquidity Risk Metrics
It is essential that banks use a range of liquidity measures for risk estimation and forecasting. Here, Moorad details the range of liquidity metrics that are employed by banks, looking beyond what is required under regulators’ rules.
Moorad Choudhry • 17:05
How a Bank Works
Financial Sectors
The Net Stable Funding Ratio (NSFR) Explained
The Net Stable Funding Ratio, or NSFR, is one of many liquidity risk metrics used as part of a bank’s suite of risk exposure indicators. Moorad describes the objective of the NSFR and how it is defined, as well as what Available Stable Funding (ASF) and Required Stable Funding (RSF) mean as factors of the NSFR metric.
Moorad Choudhry • 07:35
How a Bank Works
Bank Liquidity and the LCR
In this video January breaks down the Liquidity Coverage Ratio and explains its importance with a Northern Rock case study.
January Carmalt • 18:12