Mon premier blog

An Introduction to Banking: Liquidity Risk and Asset-Liability Management Moorad Choudhry
Publisher: Wiley, John & Sons, Incorporated

Debt securities in % of total assets. Balance sheet of euro-area banks: Liabilities side. Credit Risk is the risk that One aspect of asset-liability management in the banking business is to minimize the liquidity risk. The data suggest that financial systems are still overly complex, banking assets are concentrated, with strong domestic interbank linkages, and the too-important-to-fail issues are unresolved. Debt securities & money market paper. Indian banking industry is exposed to number of risk prevailed in the market such as market risk, financial risk, interest rate risk etc. Finally instruments with call and put options can introduce additional risk. A defining characteristic of the recent financial crisis was the simultaneous and widespread dislocation in funding markets, which can adversely affect financial stability in absence of suitable liquidity risk management and policy responses. These include 1) investors' risk aversion, 2) the perceived limited transparency concerning the risks attached to debt securities, 3) the ongoing measures being conducted by the central banks, 4) the new regulatory rules on 09. Asset-Liability Management (ALM) is one of the important tools of risk management in commercial banks of India.