T H E AL CO

C HA LL E N G E : THE NEW ROLE OF THE

AS SET &

LIAB I L I TY

MANAGEMENT

IN THE FINTECH FRONTIER June 2019 Mexico City

JEAN DERMINE

PROFESSOR OF BANKING AND FINANCE INSEAD, FONTAINEBLEAU FRANCE

Description Introduction, a Fast Changing Banking World Basel 4 regulations on capital, liquidity, interest rate risk and corporate structure have significant impact on strategy, long-term value creation, performance evaluation, advanced fund transfer pricing, product pricing and Asset & Liability Management (ALM). The digital revolution, competition from Fintech players, the ultra-low interest rate level in some countries and large economic and political uncertainty create headwinds. As the banking world is shifting from an overriding concern for growth to a preoccupation with long-term value creation and risk control, knowledge of drivers of Bank Valuation and Asset & Liability Management is becoming a necessity for all bankers accountable for the results of a profit center. ALM is a tool that ensures that decision making, risk-taking and performance evaluation are consistent with the corporate objectives set by senior management and the board, and the regulatory constraints imposed by central banks, such as Basel 3 or Basel 4. During the seminar, Professor Jean Dermine will discuss the content of his book Bank Valuation and Value-based Management (Mc Graw-Hill, 2nd edition, NY, 2015) and participants will apply concepts with the bank simulation ALCO Challenge.

Who should attend? Bankers, bank analysts, auditors, or central bankers involved in bank valuation, Asset & Liability Management, and value-based management in banking. Participants should have some valuation experience and be familiar with basic finance concepts, such as discounting and the cost of capital.

JEAN DERMINE

Professor of Banking & Finance

INSEAD, FONTAINEBLEAU FRANCE

Jean Dermine (Belgian) is Professor of Banking and Finance at INSEAD and director of its Strategic Management in Banking and Risk Management in Banking senior executive programs. Author of numerous articles on sustainable growth and value-based management in banking, Jean Dermine has published five books, including Bank Valuation and Value-based Management (deposit and loan pricing, performance evaluation and risk management), McGraw-Hill, NY, 2nd edition, 2015 (with translation in Chinese and Portuguese-Brazil). His work has been profiled in the international press, such as The Economist, Financial Times, New York Times or Wall Street Journal. Jean Dermine was Visiting Professor at the Wharton School, at Lausanne, Louvain and Luxembourg, at CESAG in Dakar, the Stockholm Schools of Economics, and a Salomon Center Visiting Fellow at New York University. As a consultant, he worked with international banks, auditing and consulting firms, national central banks, European Central Bank, Bank for International Settlements, HM Treasury, the OECD, the World Bank, the European Commission, and the Mentor Forum for the US Supreme Court and the European Court of Justice.

ALCO Challenge This is a user-friendly computer package created by INSEAD Professors Joe Bissada and Jean Dermine. Based on thirty years of research in the field of Asset & Liability Management and development of computer simulations, ALCO Challenge offers the unique feature of being extremely transparent. To help participants understand the outcome of their decisions and enjoy a learning experience, state-of-the-art control tools have been build in :

● Audit reports on product profitability ● Repricing and liquidity gaps ● A Simulation model ● An Economic Value of Equity-at-Risk Report ● An Option Risk Report ● A Foreign Exchange Simulation.

ALCO Challenge (Final Basel 3 / Basle 4 compliant) can operate in English, French, Spanish, Portuguese and Russian.

Day One

June 19, 2019

1. Value Creation, Profit Center and Foundation FTP. 2. ALCO Challenge Decision 1 3. Digital Payment, Neo-banks and Advanced FTP

Day Two

June 20, 2019

1. ALCO Decision 2 2. Credit Risk and Peer-to-Peer Lending (P2P) 3. ALCO decision 3

Day Three

June 21, 2019

1. Interest Rate and Liquidity Risk with Neo-banks and Fintech disruption 2. ALCO decision 4 3. ALCO decision 5. Results: Cheers and Sorrow

REGISTRATION E-mail: [email protected] Telephone: +52 (55) 5638 0367 - +52 (55) 5669 4729 WWW.RISKMATHICS.COM Venue: JW Marriott Santa Fe Hotel Avenida Santa Fe 160 Col. La Fe Santa Fe, CDMX. Price: $35,000 M.N. + IVA LIMITED OPENINGS

PAYMENT METHODS: 1. Bank Transfer and Cash Deposits (for Local Institutions) NAME: RiskMathics, S.C. BANK: BBVA Bancomer CLABE: 012180001105829640 BANK ACCOUNT: 0110582964 2. Bank Transfer in US Dollars (Foreign Institutions) Transferencia Bancaria en Dólares BANk: BBVA Bancomer BRANCH NUMBER: 0956 SWIFT: BCMRMXMM BENEFICIARY: RiskMathics, S.C. ACCOUNT: 0121 8000 11 0583 0066 3. Credit Card: VISA, MASTERCARD or AMERICAN EXPRESS IMPORTANT NOTICE: There will be no reimbursements.