The Handbook of ALM in Banking provides a complete overview on good practices for asset and liability management in banking.
New regulations, which require a more consistent treatment of banking books and trading books as well as more aligned business strategies, call for the integrated management of assets and liabilities in banks. At the same time, stronger separation of retail banking activities from investment banking is being proposed. Consequently, there is greater focus on efficient allocation of financial resources and respective risk management. Asset and liability management and transfer pricing play a pivotal role in this context.
This book provides a comprehensive overview of state-of-the-art asset and liability modelling, risk management techniques and transfer pricing. The book considers the aspects key to these issues: liquidity, funding, interest rates and balance sheet management.
