Asset Liability Management 2019

When we started down the path of active engagement with interest rates by the Federal Reserve, none of us had any idea how long this would last or what consequences would result from the FOMC Overnight and Quantitative Easing programs. What we did know was that interest rates would be impacted in a way that had never occurred before in this country. Although we all enjoyed the funds cost dynamic of the programs, we struggled with the asset yields that truly made it difficult to attain Net Interest Margin performance of the past. On the positive side, we seem to have much more certainty these days about where the overnight target and prime rate will be headed and this does make planning easier; however, gap that has opened up between retail deposit and wholesale funding rates promises to create major problems for any bank having to depend on non-core funding in the future. Another dynamic of the past ten years involves the shift in our balance sheets toward much longer asset maturities (or price resets) and our deposit base. With time deposits now representing just 13% of total deposits industry-wide – down from 31% at the end of 2006 – and loan portfolios filled with “commercial mini-perms”, interest rate risk in a rising rate environment also promises to be a challenge and for the first time in ten years, we face some significant funding and IRR risks. It seems a great moment for some serious discussions about the ALCO Process and this seminar has been designed to do just that.

For more information on this event click here.
1/24/2019 - 1/25/2019
Miami/Tampa, FL United States

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