ASSET-LIABILITY MANAGEMENT SYSTEM. ALM. Presented by c.s.balakrishnan. WHY ALM?. Globalisation of financial markets. Deregulation of Interest Rates. Multi-currency Balance Sheet. Prevalance of Basis Risk and Embedded Option Risk.
EFFECTS OF LIQUIDITY CRUNCH
Three-tier organizational set-up for ALM Implementation :
- ALCO headed by E.D.
- GM (T) – (Nodal Officer).
- GMs : Central Accounts, P&D, Credit, Risk Management International Division are the members.
- GM (IT) & AGM (Economist) are the invitees for ALCO meetings.
Implementation of ALM System
5. Linking up ALM to future Risk Management Strategies.