Treasury Markets and Operations

Preface

Treasury Markets and Operations (TMO) and Bank Asset and Liability Management (ALM) are the two modules within the Hong Kong Institute of Bankers' (HKIB) curriculum of Treasury Management. As part of the Associate of the Hong Kong Institute of Bankers (AHKIB) Qualifications structure, the syllabuses are tailor made for learning and development of a banking career in Hong Kong and Mainland China. Therefore, the two modules—TMO and ALM—are closely related with one focusing on treasury market knowledge and tools for strategic execution and the other on how the overall composition of assets and liabilities should be formulated and managed to support the bank business model.

Why is the role of bank treasury important? Bank treasury needs to have the capability to understand the complexity of market conditions and the usage of treasury market products to implement the ALM strategy set by the asset and liability management committee (ALCO) and bank management. It is also closely involved in the control of a number of key risks including market risk, interest rate risk and liquidity risk, which are among the eight inherent risks under constant vigilance at banks and financial institutions.

This book Treasury Markets and Operations aims to equip bank treasury professionals with the necessary knowledge and tools to understand the complexity of changing market conditions and to apply their learning to manage risks and take advantage of emerging opportunities. The launch of this ...