CityU hosts Well Link Finance Forum, discussing the importance of liquidity and asset-liability management to the financial system
City University of Macau (CityU) recently held a finance seminar at the Ho Yin Convention Centre of Taipa campus, inviting Lo Kit Sang, executive director, executive vice president, and chief financial officer of Well Link Bank, to deliver a lecture on liquidity and liability management. Distinguished attendees included Ms. Joana Leong, regional director of Well Link Bank; Adrian Cheung, dean of the Faculty of Finance; and Eva Khong Yueng Wah, associate dean of the Faculty of Finance.
The speaker, Lo Kit Sang, with nearly 50 years of experience in the banking industry, has held several key positions, including senior financial management manager at Bank of China (Hong Kong) and general manager of the finance department at Nanyang Commercial Bank (China). He specializes in financial management, liquidity risk control, and asset-liability allocation. Mr. Lu is not only member of the Fellow Institute of Public Accountants (FIPA), Fellow Financial Accountant (FFA), and Association of International Accountants (FAIA), but also holds the title of senior financial management technician (Level 1) awarded by the Ministry of Human Resources and Social Security of China. His exceptional professional expertise in financial management is widely recognized.
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During the lecture, Lo provided an in-depth analysis of the importance of bank liquidity management and asset-liability management. He emphasized the link between financial crises and liquidity risks, underscoring the need for liquidity risk management in banks. Using the collapse of Silicon Valley Bank in March 2023 as an example, he pointed out that the root cause of the bank’s failure was an asset-liability mismatch—short-term liabilities paired with long-term assets—which resulted in increasing liability costs due to rising interest rates, asset floatation, bank runs, and the eventual need to liquidate assets.
Citing 2008 Lehman Brothers incident and the 1997 Southeast Asian financial crisis, Lo illustrated how effective asset-liability allocation could mitigate market volatility and risks. Subsequently, he introduced methods to address the impact of interest rate fluctuations on bank balance sheets through Funds Transfer Pricing (FTP) and interest rate risk management tools, ensuring robust bank operations in complex financial environments.
Lo also shared his philosophy on team management, drawing parallels from the team management philosophy depicted in Journey to the West. He emphasized that a successful team must possess clear objectives, role recognition, and alignment between abilities and positions, noting that these factors would foster a positive working atmosphere, enabling the team to operate efficiently and ultimately achieve its goals. Therefore, he encouraged students to actively develop soft skills to enhance their personal growth and professional value.
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During the Q&A session, Lo shared his insights and experiences from his career development in the banking industry, encouraging the younger generation to actively enhance their understanding of financial markets and professional financial literacy, and to seize opportunities within the industry. He emphasized that with the growing integration of the financial market in Macao and the Greater Bay Area, there would be increasing cross-border development opportunities for young financial talents in the future. He advised students to focus on cultivating a regional and international perspective in finance, pay attention to geopolitical developments, and elevate their global outlook.
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The faculty and students expressed their gratitude to Lo Kit Sang and Joana Leong for their insightful sharing. Through this lecture, they gained a deeper understanding of the market practices and the latest trends in bank liquidity management and asset-liability management. The students actively engaged with the guest speakers, learning about the development trends and challenges faced by financial enterprises, and gained a clearer perspective on the future direction of the financial industry.
Source: FOF
Photos: CityU Reporter
