As the banking world is shifting from an overriding concern for growth to a preoccupation with rate of return on capital and risk control, knowledge of Asset & Liability Management (ALM) is becoming a necessity for all bankers accountable for the results of a profit center.
ALM is a tool that ensures that decision making, risk-taking and performance measurement are consistent with the corporate objectives set by senior management, and the regulatory constraints imposed by central banks, such as Basel II and III.
