Bank Asset Liability Management Best Practice: Yesterday, Today and Tomorrow

This book combines ALM concepts with the emotional intelligence of managers to maintain the financial health of a bank and react to external environment challenges. It discusses the philosophy of ALM, the interrelation of processes, and the changing role of ALM, as well as its strengths and weaknesses and future threats and opportunities.

Format: Hardback
Length: 169 pages
Publication date: 19 April 2021
Publisher: De Gruyter

As bankers delve into increasingly intricate and precise calculations and models, a purely mathematical approach alone cannot validate the viability of their business. This comprehensive book offers a valuable guide on how to seamlessly integrate ALM concepts with the emotional intelligence of managers to ensure the financial stability of a bank. By doing so, banks can swiftly respond to external environment challenges and adapt to evolving microclimates.

ALM encompasses a wide range of activities, including setting balance sheet targets, selecting instruments, and employing methodologies to achieve those targets. It goes beyond mere target attainment and emphasizes the importance of having a comprehensive understanding of the processes that should be in place within a bank to demonstrate prudence, compliance with internal and external constraints, requirements, and limitations. Moreover, ALM ensures the ongoing continuity of the bank's operations.

Bank Asset Liability Management Best Practice delves into the philosophical underpinnings of ALM, explores the interconnectedness of processes within the bank, and posits that even minor changes in one aspect of the bank's operations can have far-reaching consequences for its other parts. The author delves into the evolving role of ALM, its historical and contemporary concepts, its strengths and weaknesses, as well as potential future threats and opportunities.

By combining ALM principles with managerial emotional intelligence, banks can navigate the complex financial landscape with confidence and resilience. This book serves as a valuable resource for financial professionals seeking to optimize their ALM strategies and maintain the long-term financial health of their institutions.

Weight: 428g
Dimension: 177 x 246 x 17 (mm)
ISBN-13: 9783110666540