Asset Liability Management
Asset Liability Management (ALM) refers to the practice of managing risksfrom assets
and liabilities mismatches. Asset Liability Management (ALM) is a strategic management
tool to manage interest rate risk and liquidity risk faced by banks and other financial
services. There are various techniques for mitigating this risk such as gap analysis
and duration analysis. At the more advanced level, hedging and securitization can
be implemented in accordance with the maturity pattern or duration matching.
At SPM we have a qualified team of professionals, expert in managing interest rate
and liquidity risk which is an integral part of the overall ALM framework. We have
expertise, particularly with reference to liquidity risk, in implementing different
strategies, including Static Funding Gap, Dynamic Cash flow Gap, Liquidity Assets
Ratios, Concentration Ratios and Liquidity Stress Management in accordance with
Basel II & III requirements. Our team of experts is capable enough of ensuring that
our clients, i.e. banks and financial institutions, meet their regulatory compliance
and achieve internal risk management.
The below highlights some of the key management consulting services offered with
regard to ALM:
