Introduction to Asset-Liability Management (ALM) presents the key building blocks of how banks operate, generate revenue, and manage financial risk. This learning experience explores the essential ALM framework that institutions use to navigate interest rate volatility, maturity mismatches, and regulatory constraints.
It begins with the banking business model—how financial institutions earn interest rate spreads while managing structural risks related to funding and balance sheet mismatches. Core ALM practices are explored in detail, including how repricing gaps, yield curve exposure, basis risk, and embedded options are measured and managed.
The course also examines the behavior of the yield curve, highlighting historical patterns, macroeconomic significance, and what shifts indicate about inflation expectations, monetary policy, and investor sentiment. These insights help inform balance sheet strategy in real-time market conditions.
Strategic applications show how institutions align their asset and liability profiles in response to changing interest rate environments. This includes preparing for both rising and falling rates while balancing profitability, regulatory demands, and operational realities.
By the end, participants will be able to assess how interest rate movements affect bank performance, identify key sources of structural risk, and apply the analytical tools and frameworks used by Asset-Liability Committees to support financial stability and institutional resilience.
This course is part of the New York Institute of Finance’s Asset Liability Management Professional Certificate program.
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