1. Assets Liability ManagementALM It is a dynamic process of Planning, Organizing & Controlling of Assets & Liabilities- their volumes, mixes, maturities, yields…

Slide 1 Slide 22–1 Slide 2 Part IV The Management of Financial Institutions Slide 3 Chapter Twenty Two Risk Management in Financial Institutions Slide 4 Slide 22–4 Managing…

Slide 1 CHAPTER12 Introduction to Asset Liability Management What is in this Chapter? INTRODUCTION SOURCES OF INTEREST-RATE RISK Mortgage-backed Securities (MBS) Slide 2…

Slide 1 CHAPTER 12 Introduction to Asset Liability Management What is in this Chapter? INTRODUCTION DURATION GAP SOURCES OF INTEREST-RATE RISK ALM RISK versus MARKET RISK…

Chapter Twenty Two Risk Management in Financial Institutions Managing Credit Risk Solving Asymmetric Information Problems Screening Monitoring and enforcement of restrictive…

Part IV The Management of Financial Institutions Chapter Twenty Two Risk Management in Financial Institutions Managing Credit Risk Solving Asymmetric Information Problems…

Duration of First National Bank's Assets and Liabilities © 2012 Pearson Prentice Hall. All rights reserved. 23-* Duration Gap Analysis The basic equation for determining…