• ALM
• bank
• control
• planning

The banks have a central role in the society of nowadays given all the connections they have with all the members of the society. They permit some people to obtain objects that otherwise they could not afford and other people to increase their portfolio thanks to specific investments. If the initial banking activity was simple, through the years it has become more and more complex and in the same way more and more risky. And this increasing risk must be controlled.
At first sight it could be thought that the banks have internal incentives to control all the risks in order to maximize its effectiveness and so profitability, being its first scope. But the reality is that, in the cases where the risk occurs, the main negative consequences of a failure of the bank will rebound on all the clients of the financial institution instead of the bank itself. This is why not so many controls were naturally created by the bank which had as consequence the crisis such the Great Recession. In order to avoid other crisis like this one, the Supervisory Banking Authority decided to implement new regulations about the internal controls that must be implemented in the banks.
The objective of the thesis is therefore to describe the evolution of the planning and management control in the banks from the beginning and, most of all, before and after the financial crisis of 2008, in order to show which were the reactions of the regulations related to the internal banking controls. This objective will be explained in three main chapter: the first one that underlines the role of the bank in the society; the second one that defines the planning and management control, gives the characteristics of those and explains the evolution of the regulation related to the internal controls in the banks; a third part that will explain the increase of the synergies and relationship between the area of the Chief Risk Officer and the Chief Financial Officer.
In addition to this theoretical description, the second part of the thesis will show a practical example of an office belonging to the planning and management control, the ALM Budget and Control office in Intesa Sanpaolo, for which I did an internship in these months. The last chapter describes so the ALM Budget and Control activity. For this one, all the numerical examples will be invented and so not real numbers but just value to explain the measures used by this office.