Volume : VII, Issue : I, January - 2018

A STUDY ON ASSET LIABILITY MANAGEMENT SYSTEM IN SYNDICATE BANK

Dr. Hanmanth N Mustari

Abstract :

  Managing assets and liabilities in banks has a major concern for all bankers. ALM is the process of decision-making to control risks of existence, stability and growth of system through the dynamic balancing of assets and liabilities. The Basel II and III proposals made to various banks across the globe have heightened the importance of asset-liability management in banks. The long term health and survival of financial services entity hinges upon its ability to understand, appreciate, quantify and manage the range of risks associated with its line business. This article provides a bird-eye view on Asset liability management system used by Syndicate bank and highlights the major tools used to manage liquidity risk and interest rate risk. The bank has Asset-Liability Management Committee (ALCO) for managing Market Risk and board approved ALCO policy. The syndicate bank is conducting ALCO meeting every month for managing Liquidity risk, Interest Rate risk and investment Risk. ALCO (Asset-Liability Management Committee) is responsible for management of the balance sheet of the Bank with a view to manage the market risk exposure. The last portion of in this article evaluates the financial health of Syndicate bank by using financial key ratios.

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Article: Download PDF    DOI : https://www.doi.org/10.36106/gjra  

Cite This Article:

Dr. Hanmanth N Mustari, A STUDY ON ASSET LIABILITY MANAGEMENT SYSTEM IN SYNDICATE BANK, GLOBAL JOURNAL FOR RESEARCH ANALYSIS : VOLUME-7, ISSUE-1, JANUARY-2018

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