Asset-Liability Management Seminar and PPT with pdf report: This article of asset-liability management discusses the problems in asset-liability management and also it complicatedly organize the categories of risk that need to be managed. It generally refers to the process by which an institution manages the balance sheet of it in order to permit the liquidity scenario and alternative interest rate. The institutions like financial institutions and banks furnish the services which show them to various kinds of risks like credit risk, liquidity risk, and interest risk.

The asset liability management is an approach that furnishes institutions with the defense that makes the risk acceptable, it is considered as a function of planning for an intermediate term. In this article, we have given Asset-Liability Management Seminar PPT with PDF Report.

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Asset-Liability Management Seminar PPT with pdf report

An earlier phase of Asset-Liability Management:

In the year of 1940s and 1950s, there was a lot of funds available in the banks and those were the demand and saving deposits. Due to the low cost of deposits, the banks had to advance the techniques and by using those techniques they can avail the funds in an appropriate manner. So, the main focus was on the asset management and as the obtainability of the low-cost funds began to decrease then the liability management was an important focus of bank management efforts. Later, with the enhancement in volatility in the rates of interest, the bank began to focus more on both sides of the management of the balance sheet.

Categories of Risk:                                                         

The risk is defined as a way and it can be explained as an opportunity or the probability of the damage or loss. In the case of banks the risks are as follows:

  • Credit risk
  • Capital risk
  • Market risk
  • Interest rate risk
  • Liquidity risk
  1. Credit risk: The credit risk management is a vital challenge for the institutions of finance and failure in this may cause the failure of the banks. The credit risk is defined as the risk of the opposition party’s failure in a convention of the payment duty under a law on a particular date.
  2. Capital risk: One among the important aspects of banking is the maintenance of adequate capital on a regular basis.
  3. Market risk: The market risk has a relation with the financial condition that results from the opposing movements in the market prices. This will be more affirmed when the financial data has to be furnished on a market –to-market basis as the important and the constant unpredictable changes in the holdings of an asset could oppose and affect the bank’s balance sheet.
  4. Interest rate risk: The interest rate risk is the fluctuation in the price of bonds that could happen as a result of fluctuation. The parameters available to measure the interest rate risk are as follows:
  • Maturity
  • Duration
  • Dollar duration
  • Convexity
  1. Liquidity risk: The liquidity risk affects many institutions of India and the liquidity risk is defined as the inability of the potential to produce adequate cash to deal with the decrease in the deposits or with the increase in the assets.

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Risk Management Techniques:

There are different risk management techniques and some of them are as follows:

  • Gap analysis model
  • Duration model
  • Value at risk
  • Simulation
  1. Gap analysis model: The gap analysis model measures the direction and expands of mismatch about asset liability via funding or through the gap of maturity.
  2. Duration model: The duration model is a vital measure of the rate of interest and its easily affecting nature of assets and liabilities as the duration model takes into account about the time of entering of the cash flows and the liabilities and maturity of the assets.
  3. Value at risk: The value at risk refers to the maximum extent of the expected loss which a bank can tolerate over a horizon of the target.
  4. Simulation: The simulation model aid to introduce a dynamic feature in the analysis of interest rate risk.

Emerging issues in the Indian Context:

  • At present, with the onset of the liberalization, the Indian banks are more exposed to the uncertainty and also to the competition in the world.
  • This makes it imperative to have a proper asset-liability management system in each and every place.

Content of the Seminar and pdf report for Asset-Liability Management

  • Introduction
  • Earlier phase
  • Risk measurement techniques
  • Asset-liability management
  • Emerging issues in the Indian context
  • Conclusion
  • References

Here we are giving you Asset-Liability Management Seminar and PPT with PDF report. All you need to do is just click on the download link and get it.

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