AssetLiability Management for Financial Institutions: Balancing Financial Stability with Strategic Objectives (Key Concepts) - Hardcover

Bloomsbury

9781849300414: AssetLiability Management for Financial Institutions: Balancing Financial Stability with Strategic Objectives (Key Concepts)

Hardcover

ISBN 10: 1849300410 ISBN 13: 9781849300414

Publisher: Bloomsbury Information, 2012

The asset liability management (ALM) of a financial institution requires informed decisions coupled with strategy in order to meet financial objectives. Combined with a range of risks and constraints, effective ALM requires the formulation, implementation, monitoring and revision of strategies on a daily basis. Asset-liability management in the banking industry has come to the fore since the beginning of the Credit Crunch in mid 2007, with overexposed financial institutions collapsing or being propped up by governments and taxpayers ultimately footing the bill. The evidence suggests that the pain is not over with banks lacking commitment and confidence in terms of lending in Europe and the US. Without mending the balance sheet and formulating new strategies, few banks will be able to commit to new opportunities and become takers of qualified risk in the near future. Aimed primarily at risk managers/analysts within financial institutions, but also of significant interest to treasurers, pension fund managers, auditors, controllers, regulators, legal and compliance, Asset Liability Management for Financial Institutions helps build the knowledge base in the context of the turmoil in the banking sector and covers issues such as how to increase the value of the firm, corporate finance objectives, managing interest rate risk and liquidity risk, risk structure, and calculations including duration and convexity. Further areas cover will include: - Yield Curve Analysis - Strategies and diversification post Credit Crunch - Applications for Futures and Forwards - Forward Rate Agreements - Eurodollar Futures - Gapping Analysis - Interest Rate Swaps - Gapping and Duration Analysis - Present Value - VAR Approaches - Capital Adequacy and the Basle Directives

"synopsis" may belong to another edition of this title.

Product Description:

Effective asset-liability management (ALM) of a financial institution requires making informed strategic and operational decisions. Ever more important in the wake of the corporate bailouts and collapses of the financial crisis, ALM encompasses the formulation, implementation, monitoring, and revision of strategies, often on a daily basis due to the fast-moving nature of the related risks and constraints. This approachable book features up-to-date practitioner and academic perspectives to provide you with the knowledge you need. Key foundation information is backed up by the latest research and thought leadership to form a comprehensive guide to ALM for today and into the future, with case studies and worked examples. Detailed coverage includes: * Successful risk management frameworks * Coherent stress-testing * Modeling market risk * Derivatives and ALM * Contingency funding to manage liquidity risks * Basel III capital adequacy standard * Investment management for insurers * Property and casualty portfolio management * Funds transfer pricing * Problem loan modeling

About the Author:

Multi-author - leading practitioners within the banking industry.

"About this title" may belong to another edition of this title.