I’d like to thank Omar Brown and the rest of the management team at Sagicor Bank in Kingston, Jamaica for inviting me to provide a 2-day ALM Workshop.
Attendees included executive management, members of ALCO, the heads of major lending and deposit gathering business units and numerous others representing various risk and profitability functions across the bank.
As is the case in many countries, interest rates in Jamaica have declined substantially in recent years; disciplined management of both sides of the balance sheet is critical to maintaining profitability and minimizing risk. More importantly, in the absence of well-developed interest rate swap and bank debt markets, interest rate risk and liquidity risk must be managed primarily through the structuring of loan and deposit portfolios.
With a well-developed FTP framework, the business units and Treasury are compelled to work together to find the optimal mix of product features that maximize profitability and minimize balance sheet risk.
It was an honor to share my perspective on this exciting subject. If you are interested in learning more about our workshops and how they can be of value to your organization, do not hesitate to reach out.