This module is not currently running in 2024 to 2025.
Asset-liability management is an important discipline in banking, and one that must be mastered by every bank in the world, irrespective of its operating model or product suite. Every bank in the world possesses a Treasury desk that is responsible for managing the balance sheet asset-liability mix and liquidity risk management.
This module aims to cover the following topics:
• Asset-Liability Management: strategic ALM and balance sheet management
• Treasury Target Operating Model and reporting line
• Constructing the bank internal funding curve
• Liquidity risk management
• Capital management and strategy
• Securitisation and balance sheet management
• Investor relations and credit ratings
The module will be taught by lectures, seminars and private study.
Total Contact Hours: 32
Private Study Hours: 118
Main assessment methods
Exam - two-hour, unseen and closed book: 70%
VLE – 45 minutes. Each student will have a window of 24 hours in which to take the test: 30%
Reassessment methods
Reassessment will be on a like-for-like basis.
Choudhry, M., (2012). The Principles of Banking, Singapore: John Wiley & Sons.
Hull, J., (2012). Risk Management and Financial Institutions, 3rd edition, Hoboken, NJ: Wiley.
The intended subject specific learning outcomes.
On successfully completing the module students will be able to:
- Demonstrate experience in implementing concepts and techniques relating to the management of cash assets and liabilities held on a bank balance sheet.
- Formulate policy and develop a coherent strategic plan for a bank's liquidity management and liabilities mix.
- Apply knowledge and techniques learned in the module to successfully manage interest-rate risk in the Banking Book.
- Demonstrate a systematic understanding of the effectiveness of corporate governance practice in a bank, and the role of the bank asset-liability committee (ALCO).
The intended generic learning outcomes.
On successfully completing the module students will be able to:
- Research, plan, and work independently.
- Effectively communicate information, ideas, and solutions to both specialist and non-specialist audiences.
- Apply quantitative and problem solving techniques to complete or abstract data.
- Critically evaluate arguments and assumptions, and make judgements to offer alternative solutions.
University of Kent makes every effort to ensure that module information is accurate for the relevant academic session and to provide educational services as described. However, courses, services and other matters may be subject to change. Please read our full disclaimer.
