Asset Liability Management or ALM is a mechanism designed to address the risk faced by banks due to a mismatch between assets and liabilities, which arise either because of liquidity or because of ...
Liability management involves balancing customer deposits and borrowed funds to ensure banks can lend effectively while maintaining stability and reducing financial risks.
usiness firms use a financial analysis technique called asset vs. liability management (ALM) to mitigate risk due to a mismatch in their assets and liabilities. A mismatch occurs when assets and ...