Asset Liability Management is one of the much talked issues in the banking industry in some recent years because every financial institution has to keep some liquid assets to meet the daily need of the customers as well as the maintain the better profit from effective interest rate & foreign exchange risk management. The acceptance and management of financial risk is innate to the business of banking and banks’ roles as financial intermediaries. To meet the demands of their customers and communities and to execute business strategies, banks make loans, purchase securities, and take deposits with different maturities and interest rates. These activities may leave a bank’s earnings and capital exposed to liquidity crisis.
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