Treasury is the driving force of ALCO. ALM desk executes the strategies of the Asset Liability Management Committee for effective management and monitoring of various balance sheet gaps. The ALM function comprises maintaining regulatory limits, management of liquidity, maturity profiles of assets and liabilities and interest rate risks. ALM desk guided ALCO by preparing ALCO paper incorporating local and international economic update, market liquidity forecasts, interest rate projections, balance sheet analysis and recommend measures to be taken to reduce or increase deposit and lending rates with an objective to optimize balance sheet mismatch.
Asset Liability Management (ALM) Services:
- Matching Volume of Assets with volume of liability in different tenors to minimize or optimize liquidity risk, depending on projected interest rate path.
- Provide rates of deposit of different deposit schemes.