Difference between revisions of "Asset and Liability Management"
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* [[Credit Risk]] may be also in scope (some aspects) but is more commonly identified as part of [[Credit Portfolio Management]] | * [[Credit Risk]] may be also in scope (some aspects) but is more commonly identified as part of [[Credit Portfolio Management]] | ||
| − | == Gap Management == | + | === Gap Management === |
An essential aspect of ALM is managing "gaps" (mismatches) of maturities and cashflows on either side of the [[Balance Sheet]] | An essential aspect of ALM is managing "gaps" (mismatches) of maturities and cashflows on either side of the [[Balance Sheet]] | ||
| + | == Service Domain == | ||
| + | The unit overseeing the banks asset and liability policies and position | ||
| + | |||
| + | |||
| + | [[Category:BIAN Service Domain]] | ||
[[Category:ALM]] | [[Category:ALM]] | ||
Revision as of 16:17, 11 June 2021
Definition
Asset and Liability Management (ALM) is a broad description of tasks with the precise composition depending on the organization / business model. For financial institutions, ALM may encompass managing risks and exposures in some of the following areas:
- Interest Rate Risk
- Liquidity Risk
- Currency Risk (FX Risk)
- Optionality risks (embedded options such as Prepayment Risk)
- Credit Risk may be also in scope (some aspects) but is more commonly identified as part of Credit Portfolio Management
Gap Management
An essential aspect of ALM is managing "gaps" (mismatches) of maturities and cashflows on either side of the Balance Sheet
Service Domain
The unit overseeing the banks asset and liability policies and position
