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ASSET LIABILITY MANAGEMENT
What is the primary objective of Asset Liability Management (ALM) in banks?
ALM aims to manage the risk arising from mismatches between assets and liabilities in terms of maturity, interest rates, and liquidity to protect the net interest income and net economic value of the bank.
What is the full form of ALM in banking context?
Asset Liability Management.
Which RBI committee first formally introduced ALM guidelines for Indian banks?
The RBI introduced formal ALM guidelines in February 1999, drawing on recommendations from the Internal Working Group, making ALM mandatory for scheduled commercial banks.
Which body within a bank is primarily responsible for implementing ALM policy?
The Asset Liability Committee (ALCO).
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