January 2025

Welcome to first 2025 edition of the Bearning newsletter! As always, we bring you valuable banking insights, updates on our professional courses, and opportunities to enhance your financial expertise. As usual, do not miss the spotlight on Slovak & Czech language section (3) and the ???banking ?? quiz (4).

1. Insights for Banking Professionals

This month, we’ve shared key insights on liquidity risk, regulatory challenges, and treasury management developments. Here are some highlights from our recent LinkedIn posts:.

• Bank Treasurers Facing Many Challenges, and one of the is the Yield Curve Risk. We shared an interesting reading - 01/2025 Edition of the U.S. #Bank #Treasury Newsletter This interesting blog highlights the shape of the USD yield curve ?? during the current easing cycle, and compares it with the past. Yield curve risk ?? is an important topic for all #ALM and #Treasury managers. Read our post and the full blog here.
• Lessons from Bank Runs – We also shared a real must-read ?? for #ALM and #Treasury #Bank Managers! The Federal Reserve Bank of New York published a fascinating article analyzing the anatomy of the bank runs in March 2023. The article provides clear and transparent statistics that can help bank managers identify early warning signs of potential bank runs and prepare for liquidity challenges. Indeed, the banking turmoil of recent years has highlighted the vulnerabilities of certain liquidity models. Read our post and the full analysis here.
• Fintech, Bank Liquidity and LCR – The rise of fintech has significantly altered the landscape of liquidity management. Instant payments and digital banking innovations increase transaction velocity, requiring banks to adapt their approaches to intraday liquidity monitoring and stress testing. Stress testing is crucial for ensuring liquidity resilience, yet many banks still struggle with scenario design and effective response strategies. I had the pleasure of joining Neville Roberts on Planixs' Liquidity talks podcast to discuss this topic that’s really critical for all banks today. ?? Missed it live? Explore our post and catch up now ???
• We took a closer look at the ?? Liquidity Coverage Ratio (LCR) in collaboration with Planixs also in a blog, and I was pleased to contribute to it. Learn more from our post here.

2. Bearning Courses and E-Learning Updates

Explore Bearning Courses and Trainings for Bankers, Recaps of Recent Workshops, and E-Learning Offerings

??Digital Bank Transformation – What’s Next? We kicked off 2025 with our Digital Bank Transformation course, covering the latest trends in digitalization, fintech disruption, and regulatory challenges. Participants explored how technology is reshaping banking strategies and how traditional banks can stay competitive in a fast-changing landscape. We received an average feedback score of 9.7 out of 10, so it is worth to mention. Read a post about here.

?? ALM at the Core of Bearning’s Expertise At Bearning, Asset & Liability Management (ALM) remains at the heart of what we do. This includes liquidity risk management, interest rate risk strategies, and balance sheet optimization. Our ALM Masterclass provides an in-depth exploration of best practices, risk modeling, and regulatory updates.

?? The Importance of Quantitative ALM and Planning - Effective Asset & Liability Management (ALM) and balance sheet planning require quantitative models that help banks analyze risks and make strategic decisions. Given the increasing complexity of banking, data-driven decision-making is no longer optional—it’s essential. We offer a free e-learning course on Quantitative ALM and Planning, where you can explore the fundamentals of scenario analysis, balance sheet forecasting, and risk-adjusted planning. This course is part of our collaboration with QuantPlan, a powerful tool designed for strategic ALM, liquidity forecasting, and stress testing. ?? Start your free course here: QuantPlan Free Course

?? More Free E-Learning Courses for Bankers - We continue to offer free online courses to help banking professionals enhance their expertise. Our introductory courses cover financial bank management, ALM basics, treasury operations, and market risk fundamentals. If you're looking for a structured learning path, we also offer a comprehensive ALM course bundle with a certification option. Explore our courses here.

?? Exclusive for our newsletter readers: Enjoy a special 30% discount on our course bundles with the coupon code EXTRA30OFF – available for a limited time:

?? All E-learning Courses, Tests & Certificates (Bundle)

?? Banking and Financial Management (Bundle - 7 E-learning courses)

3. Spotlight: Live Workshops in Slovak or Czech Language

Bearning kurzy na?ivo v slovenskom a ?eskom jazyku

Na na?om webe bearning.sk v?dy nájdete aktuálny kalendár ?? verejnych online kurzov.

?? Bezplatny e-learning s certifikátom k na?ím live kurzom: ku v???ine na?ich online kurzov v sloven?ine teraz pridávame zdarma e-learningovy kurz v angli?tine, zakon?eny certifikátom! Táto kombinácia umo?ní ú?astníkom nielen roz?íri? si vedomosti, ale aj získa? certifikát, ktory m??u vyu?i? vo svojej kariére.

Túto vyhodu m??ete vyu?i? u? za?iatkom februára na kurze Corporate Treasury & Hedging. ??? Poznáte finan?né trhové produkty a ich vyu?itie na hedging? Neváhajte, prihláste sa alebo odporu?te kolegom.

• ?? Dátum: 6. február 2025 (?tvrtok)
• ?? Formát: Interaktívny online tréning
• ?? Registrácia: Prihláste sa tu.

? ?o sa na kurze nau?íte? ?? Ako fungujú finan?né trhy a ich produkty ?? Ako efektívne vyu?íva? treasury produkty ?? Ako rie?i? klientské potreby v oblasti menového a úrokového rizika ?? Praktické príklady a diskusie z reálneho prostredia ?? BONUS: Ka?dy ú?astník získa GRáTIS e-learningovy kurz "Treasury and Financial Markets" v angli?tine, ktory kon?í certifikátom.

Okrem kurzu Corporate Treasury & Hedging, ktory sa uskuto?ní u? 6. februára, pripravujeme vo februári ?al?ie dva verejné online kurzy:

• ?? 13. február 2025 – ESMA regulácie MiFID a MiCA ?? Preh?ad a porovananie 2 regulácií finan?nych trhov, ich dopad na banky a investi?né spolo?nosti, ako aj praktické aspekty implementácie MiFID a MiCA.
• ?? 17. február 2025 – Banková regulácia ??? Vyborny preh?adovy kurz zamerany na k?ú?ové oblasti bankového doh?adu, Basel III/IV, kapitálové po?iadavky a ?al?ie d?le?ité pravidlá, ktoré ovplyvňujú bankovy sektor.

V marci prinesieme ?al?ie skvelé kurzy pre bankárov, ktoré sa budú venova? aktuálnym témam a reguláciách. Sledujte na?e aktualizácie a rezervujte si miesto na kurze vopred!

Bearning kurzy sa zameriavajú na d?le?ité témy z bankovníctva, ako napríklad riadenie aktív a pasív (ALM), finan?né trhy, regulácia a riadenie rizík, privátne bankovníctvo a investovanie. Taktie? ponúkame ?kolenia zamerané na fintech a digitalizáciu, kyberkriminalitu, AML a dodr?iavanie regulácií (compliance). V?etky Bearning kurzy sú dostupné ako verejné online kurzy alebo inhouse ?kolenia pre in?titúcie, ktoré sa ?asto realizujú prezen?ne priamo v bankách alebo in?titúciách. Podrobnosti a mo?nos? prihlásenia nájdete tu: ??

4. Banking Industry Quiz

Test Your Knowledge with Bearning Monthly Bearning Banking Quiz ?????

This month’s quiz focuses on treasury hedging strategies. Managing foreign exchange (FX) risk is crucial for companies dealing with international transactions.

? A European company exports goods to the U.S. and expects to receive a payment in USD in three months. How can it hedge against the FX risk associated with a potential depreciation of the USD? There are more correct answers.

A) Buy EUR/USD Outright

B) Buy a EUR/USD call option

C) Sell a EUR/USD call option

D) Buy a EUR/USD put option

E) Buy EUR/USD call option & Sell EUR/USD put option with a lower strike price (bear spread strategy)

F) Do nothing and hope for a favorable exchange rate movement

?? Hint: The goal of FX hedging is to protect against adverse currency movements while considering cost, flexibility, and financial impact.

?? Stay tuned for the correct explanation in next month’s newsletter!

5. Quiz Solution Corner ?

Review and Learn from Last Month's Quiz

In last month’s quiz, we asked:

? Which of the following is NOT commonly associated with fintech?

A) RegTech B) Blockchain C) Artificial Intelligence D) Hedging

? Correct answer: D) Hedging

Explanation:

Fintech (financial technology) refers to innovative technologies that enhance or disrupt financial services. The three incorrect options are all closely tied to fintech innovations:

?? RegTech (Regulatory Technology) – A fintech subcategory that focuses on automating regulatory compliance, risk management, and reporting using sometimes also AI and big data.

?? Blockchain – A core technology behind cryptocurrencies and decentralized finance (DeFi), widely used in payments, smart contracts, or digital identity solutions.

?? Artificial Intelligence (AI) – Used in various fintech applications, from robo-advisors and fraud detection to credit scoring and automated trading.

On the other hand, hedging refers to risk management strategies used by corporations and financial institutions to offset potential losses, typically involving financial market instruments like derivatives, such as FX forwards, IRS or Cross-currency Swaps, or options strategies. While fintech has introduced new ways to execute and analyze hedging strategies, hedging itself is a traditional financial concept, not a core fintech innovation.

?? Do you want more banking quizzes and tests with detailed explanations? Sign up for our Bearning e-learning platform, where you'll find over 1000 questions ?? with explanations and the opportunity to earn a certificate. Many parts of our e-learning courses are free, including a variety of texts ??, quizzes, and insightful explanations.

For more information, visit our websites: bearning.com and bearning.sk. Follow us on LinkedIn and stay updated with the latest in banking education and workshops. Contact us at: [email protected]