Objective of the Program

Asset liability management (ALM) and Liquidity risk management are important facets of risk management framework. The asset liability mismatches generally arise from funding of long-term assets by short-term liabilities. This risk was recently experienced by a few large NBFCs and if such problem is not addressed effectively and on a timely basis could pose a serious systemic risk. The program objective is to discuss and find ways of improving the effectiveness of risk management to address issues arising on account of asset liability mismatches and liquidity risk.

Broad topics to be covered in the program:

•      Asset liability management – Issues and Challenges

•      Addressing asset liability mismatches - Financing of Long Term Projects, Take Out Financing, Resource Raising 

•      Funds transfer pricing; strategic balance sheet management

•      Systemic risk - Inter linkages between banks, mutual funds and NBFCs

•      Liquidity risk management – Standards and Monitoring tools

•      Funding liquidity risk and market liquidity risk

•      Measuring liquidity risk – Stock and Flow approach

   •      Liquidity risk and solvency – Recent phase of stress and challenges