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

Investment opportunities in capital budgeting process, Briefly examine the ...

Briefly examine the significance of identification of investment opportunities in capital budgeting process

Over the counter (otc), OTC refers to financial securities whose sale and p...

OTC refers to financial securities whose sale and purchase are not conducted over a stock exchange.

What typ, how would you judge the potential profit of bajaj electronics on ...

how would you judge the potential profit of bajaj electronics on the first year of sales to booth plastics and give your views to increase the profit ?

State what is average cost, State what is Average cost Average cost rep...

State what is Average cost Average cost represents weighted average of the costs of each source of fundsemployed by enterprise, weights being the relative share of each source

Deficiency in design, Deficiency in Design - This exists when a control ess...

Deficiency in Design - This exists when a control essential to meet the control objective is missing or an existing control isn't properly designed so that even if control operates

Bond Valuation, The Pennington Corporation issued a new series of bonds on ...

The Pennington Corporation issued a new series of bonds on January 1, 1979. The bonds were sold at par ($1,000), have a 12 percent coupon, and mature in 30 years, on December 31,

Portfolio management, Portfolio Management: Project Portfolio Manageme...

Portfolio Management: Project Portfolio Management (PPM) is the centralized management of processes, technologies and methods used by project management offices (PMOs) and pro

What is marginal cost of capital, What is Marginal cost of capital Marg...

What is Marginal cost of capital Marginal cost of capital, by contrast refers to incrementalcost associated with new funds raised by firm. Marginal cost is the specific conc

Standard communication protocol used for the internet, Question: (a) W...

Question: (a) What is a computer virus? List and explain the different type of computer viruses? (b) List 4 steps which you can use to minimize the chances of being infec

Project on investment banking house, The Project to be Addressed by the Pap...

The Project to be Addressed by the Paper: You have just graduated from CCI's MBA program and have secured a position as a fund manager for a well known investment banking house

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