5 best practices for asset-liability management

Description

Abstract: Federal regulators are increasing their scrutiny of banks’ asset-liability management (ALM) programs. ALM models typically focus on interest rate risk— though liquidity risk is also a significant factor. This article offers five best practices banks can consider in ensuring their banks meet regulatory expectations. A brief sidebar notes that banks need to review and update their ALM policies before adding new products or services — or adopting new strategies.