The Bank Treasury Function - Resources, Tools and Procedures

Day One

09.00 - 09.15 Welcome and Introduction

09.15 - 12.00 The Treasury Function

• What Is “Treasury”?
• Treasury Objectives and Responsibilities
• An ALM Framework for Treasury Management
• How Treasury Management Can Create Shareholder Value

Treasury Organisation and Procedures

• Establishing the Framework for Treasury Management
  • Defining the scope, level and content of Treasury Management
  • Defining risk attitude and risk tolerance
  • Formulating a treasury policy
  • Organisation
  • Responsibilities
• Case Study:
  • The Treasury Function at “NoHope Bank”

12.00 - 13.00 Lunch

13.00 - 16.30 Building Core Treasury Skills

• Understanding the Sources of a Bank's Assets, Liabilities and Profits
• Understanding the Practicalities of Treasury Tasks
  • Cash management and liquidity management
  • Foreign exchange and interest rate management
• Understanding the Practicalities of Financial Markets and Instruments
  • Money and capital markets
  • FX markets
  • Derivatives markets
  • Dealing methods
  • Market conventions
  • Settlement techniques and systems
  • Regulatory issues
• Exercises

Day Two

09.00 - 09.15 Brief Recap

09.15 - 12.00 Accounting, Reporting and Controls

• Treasury Reporting
  • Internal (management) and external reporting
• Accounting issues related to use of financial instruments
  • FAS133 and IAS139
• Treasury IT Systems
• Benchmarking and Performance Measurement

Structuring Products to Meet Clients Needs

• Coordination of Treasury Objectives with the Design of Client Solutions
  • Maximizing spread income
  • Transferring risk through client solutions
• Creating Optimal Cash Management Solutions – for the Client and for the Bank
• Structuring Deposits and Loans
• Small Exercise

12.00 - 13.00 Lunch

13.00 - 16.00 Derivatives Applications in Bank Treasury

• Derivatives and their Characteristics
• How Derivatives Can be Used to Add Value in Treasury
• Hedging of rate risks
• Asset-Liability Management with Derivatives
• Case Studies:
  • Using FRAs and deposit futures for short-term interest management
  • Using FX derivatives to hedge FX risks
  • Using swaps to manage rate risk and create “overlays”
  • Using FRAs, futures and swap to maximize spread income and risk-adjusted return on capital
• Small Exercise

Summary, Evaluation and Termination of the Seminar