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FINANCIAL P E RF O R MA N C E A Plain English Guide to Asset/Liability Management for Community Banks sales profitstars.com 877.827.7101 www.ProfitStars.com Contents How this Booklet is Organized:.

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Based on the aforesaid premise, the broad objectives of ALM are: Planning to Meet the Liquidity Needs: ADVERTISEMENTS: ... Arranging Maturity Pattern of Assets and Liabilities: ... Spread Management: ... Gap Management: ... Interest Sensitivity Analysis:

Examples of assets: Cash, inventory, building, furniture, and accounts receivable. Examples of liabilities: Loans, accounts payable, sales tax payable, and debts.

Formal, written liquidity and ALM banking and ALM finance-policies.

One objective of ALM is to meet financial goals. A primary function of ALM is generating earnings. Financial institutions have very specific financial goals. Key profitability outputs ALM measures include net interest income, return on assets, and return on equity.

Asset/liability management is the process of managing the use of assets and cash flows to reduce the firm's risk of loss from not paying a liability on time. Well-managed assets and liabilities increase business profits.

a) Dispose off liquid assets. b) Increase of short-term borrowings. c) Minimise the holdings of less liquid assets. d) Increase of liabilities of long-term tenure.

The three main risks in ALM are: Credit risk. Liquidity risk. Interest rate risk.

ALM Models Interest Rate Risk. Currency Risk. Optionality Risk (embedded options such as the Prepayment Option and associated Prepayment Risk) Credit Risk. Liquidity Risk.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232