Question Paper on Asset Liability Management

[prtk.nayak]

1. Asset Liability Management is said to be the the life line of Banking. Evaluate this statement with brief explanation.
2. Briefly explain the role of Structural Liquidity statement in effective Liquidity Risk Management?
3. Explain the significance of Net Interest Income and Net Interest Margin on the profitability of Bank.
4. Critically analyze the relevancy and impact of Interest Rate Risk and Liquidity Risk on the Bank's Balance Sheet? How are these Risks addressed by the Bank?
5. What are the RBI Guidelines for effective Management of ALM in banks in India?
6. What are the components of the Bank's Balance Sheet covering both on and off balance sheet heads?

 

[Business-education]

<h2>Meaning and Definition of Asset Liability Management</h2>

Asset liability management (ALM) is the administration of policies and procedures that address financial risks associated with changing interest rates, foreign exchange rates and other factors that can affect a company’s liquidity.