Project Finance on Assets and Liability Management of Different Banks
Project Finance on Assets and Liability Management of Different Banks Abstract ALM is a dynamic process of planning, organizing, coordinating, and managing assets and liabilities their mixes, volumes, maturities, yields, and costs in order to attain a defined Net Interest Income. As all bank operations revolve around obtaining and deploying money, Asset-Liability Management (ALM) takes on more importance as a risk management effort by Indian banks. Measuring and managing liquidity risk is a critical aspect of ALM. A mismatch between the maturities of assets and liabilities exposes the balance sheet to liquidity risk. The purpose of this study is to use the Gap Analysis Technique to assess the liquidity risk in SBI and affiliated banks in India (maturity profiling). This study tries to evaluate the liquidity risk faced by the sample banks in 2011-2012 using publicly accessible information. According to the results, banks are vulnerable to liquidity risk. For More Details About...