BANKING AFFAIRS

Detailed explanation-1: -Asset and liability management (often abbreviated ALM) is the practice of managing financial risks that arise due to mismatches between the assets and liabilities as part of an investment strategy in financial accounting. ALM sits between risk management and strategic planning.

Detailed explanation-2: -Asset Liability Manpower Was this answer helpful?

Detailed explanation-3: -Defines asset-liability management (ALM) as the process whereby a bank’s total assets and liabilities are controlled and managed simultaneously in an integrated fashion.

Detailed explanation-4: -An asset/liability management is the process that is defined as paying off liabilities from assets and cash flows of a company, and its proper implementation reduces the risk of loss for not paying the liabilities on time.

Detailed explanation-5: -The initial focus of the ALM function would be to enforce the discipline of market risk management viz. managing business after assessing the market risks involved. The objective of a good risk management systems should be to evolve into a strategic tool for effective management of FIs.