An Introduction to Banking: Liquidity Risk and Asset-Liability Management by Moorad Choudhry

An Introduction to Banking: Liquidity Risk and Asset-Liability Management Moorad Choudhry ebook
ISBN: 9780470687253
Publisher: Wiley, John & Sons, Incorporated
Page: 384
Format: pdf

They were also given an overview of interest rate risks using Asset-Liability Management (ALM). SunGard provides integrated, enterprise-wide solutions for market, liquidity, credit and operational risk management, as well as asset liability management. Primarily on the liability side of the bank. The asset liability committee is responsible for balance sheet risk management. The workshop introduced both theoretical and practical knowledge to assist rural banks in developing comprehensive risk management practices, policies, and strategies. Banks face several risks such as the liquidity risk, interest rate risk, credit risk and operational risk. In the model studied by Allen and Gale, systemic risk arises through liquidity shocks that can have a domino effect, causing a problem at one bank to spread to others, potentially leading to failures throughout the system. We then turn to a broader perspective of banks that includes an examination of the asset side, first as an extension of the basic liquidity transformation model and then in its own right as an alternative functional perspective on banking. Financial sector reforms introduced in the early 1990s as a part of the structural reforms have touched upon almost all aspects of Although banks operated under regulatory constraints in the form of statutory holding of Government securities ( statutory liquidity ratio or SLR) and the cash reserve ratio (CRR) and lacked functional autonomy and operational . These two papers provide important insights into how the liability and asset sides respectively of the bank's balance sheet would respond to the introduction of asset risk. Research and Markets has announced the addition of John Wiley and Sons Ltd's new book An Introduction to Banking: Liquidity Risk and Asset-Liability Management to their offering. It equipped banks with The participants were trained on doing GAP Analysis and liquidity ratio computations by letting them read and analyze sample cases of financial statements. Review liquidity contingency plan for the banks and financial institutions.