Asset–Liability Management for Financial Institutions : Balancing Financial Stability with Strategic Objectives

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