Outline the objectives of alm, Financial Management

Assignment Help:

You are a member of the ALM Committee (ALCO) of ANZ Bank. A visiting member has some queries relating to the general framework of the ALM and interest rate risk impact on the income statement of the bank. You have been assigned the task of drafting a response to each of them. The queries are as follows:

(a) Briefly define Asset and Liability Management (ALM) concept for a commercial bank.

(b) Briefly outline the objectives of ALM.

(c) Explain what are the main issues considered by an ALM committee within a bank.

(d) What are the different sources of risks faced by a commercial bank?

(e) In view of the forthcoming Monetary Policy Committee of the Central Bank, there is a speculation of a possible decrease in the repo rate by 75 basis points. Exhibit 1 provides a snap shot of the breakdown of loans to customers and deposit from customers per product category.


Related Discussions:- Outline the objectives of alm

The safety margin, Norfolk Ltd is specialized in producing & selling air co...

Norfolk Ltd is specialized in producing & selling air conditions.  In 2010, the manufacturing cost per unit included:

Financial communications, Financial Communications Also known as inves...

Financial Communications Also known as investor or shareholder relations, this corporate communication sub function moves against from the traditional handling of the finan

Decision making, Write a report to the Board of Directors of Solvent Ltd to...

Write a report to the Board of Directors of Solvent Ltd to analyse the performance of companies X and Y and to give recommendation as which of those two investment opportunities is

Show repayment of principal, Your company is preparing to borrow $1,750,000...

Your company is preparing to borrow $1,750,000 on a 3-year, 10%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will sho

How does it help financial managers make business decisions, What is the in...

What is the investment opportunity schedule (IOS)?  How does it help financial managers make business decisions? The investment opportunity schedule illustrates graphically pro

Financial reports, Financial Reports: Each person has their own percept...

Financial Reports: Each person has their own perception on what a particular financial report should contain, and invariably in what they consider to be the important factors w

Step-up (step down) notes, These types of securities have more ...

These types of securities have more than one coupon rate and each subsequent coupon rate is higher (or lower) than the previous coupon rate. For

State about the two types of government securities, State about the two typ...

State about the two types of Government Securities There are two types of Government Securities which are offered: Government Floating Rate Bonds which pay a floating rate

Lease, Lease A lease is a contractual arrangement allowing one party th...

Lease A lease is a contractual arrangement allowing one party the use of some exact assets for a specific times period in exchange for a payment it is same as a rental arrangem

Determine market risk premium, To determine Henkel's corporate beta, unleve...

To determine Henkel's corporate beta, unlever (and relever) the ordinary least squares (OLS) market betas for each company in the European Household and Personal Care segment. Pric

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd