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On The Asset And Liability Management Modes And Measures Of Commercial Banks

Posted on:2004-06-02Degree:MasterType:Thesis
Country:ChinaCandidate:P S GuoFull Text:PDF
GTID:2156360125959701Subject:Finance
Abstract/Summary:PDF Full Text Request
Commercial Bank plays a critical role in the world' s economic system. As after a tremendous development and continuous innovation, it becomes the economic foundation for each country. Thus more attention and focus has been placed on "Asset-Liability Management" of Commercial Bank.In the modem economic environment, commercial Bank confronted with different forms of risk including credit risk, liquidity risk, interest rate risk, foreign-exchange risk, operation risk, etc, where they could not be fully diversified. In other words, it is not the problem as whether to accept or to reject risk, but rather it focus on the maximum risk that an institution can bear. Such kind of risk is determined by the asset-liability management committee (ALCO), whose authority power is designated by the Board of Directors. After the maximum risk level has been determined, the main objective of asset-liability management would be to coordinate the combination of the asset and liability and to maximize the operating profit within a given level of risk.
Keywords/Search Tags:Commercial Bank, Asset- Liability Management, Risk, Operating Profit
PDF Full Text Request
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