How can a medium-sized Bank develop its own asset or liability risk management system? (English)

In the banking industry, asset liability management is the management of risks arising from mismatches between bank assets and liabilities (debt and assets). Banks are facing multiple risks such as liquidity risk, interest rate risk and credit.

Asset and liability management (often abbreviated as ALM) is a way of managing the risks arising from the mismatch between assets and liabilities. Each bank or other financial institution has various roles and boundaries mainly for ALM, depending on each business model adopted. It also explains the various risks associated with each different ALM system. However, recently, the asset liability management plan has shifted to expanding foreign exchange risk factors and capital management operations. The shift in this priority area is based on a survey that shows that nearly 50% of participants in major financial institutions are considering capital management and the risk factors of the associated ALM unit. As a result, the ALM program focused on all areas and processes:

Asset / liability management is the process of managing bank risks and evaluating and implementing actions to achieve financial goals. If remote planning is the future goal of the bank, ALM will focus on how to achieve this. In the remaining chapters we will discuss many of the ALMs. The budget process is a fiscal year action plan that can be compared with the bank's actual results to take corrective action. Basically, the budgeting process is a short-term (typically one year) version of the long-term planning and asset / liability management strategy. This is the "road map" of that year. Normally, banks can obtain monthly detailed progress reports showing original budget and actual reports. The budget is traditionally a fiscal budget, but the budgeting process should include non-financial measures. There are many such examples such as the number of employees, the number of budget ATMs, the number of new customers, and so on.

This is the last part of ordinary magic that we need to consider. Each bank manages its own assets - all customer assets (your money!), Banking assets (your house!), And all complexity - of the bank, its own large, complex, very expensive It is a duty to have a very sophisticated computer system. There are banks as a whole, such as regulators and other banks. Banks are software and software is banks. The financial system consists of thousands of these agencies, and in many cases, the network uses primitive, old and unreliable computer systems. The technical process is slow because anyone who has sent wire transfers so far can prove it. The system is amazing: when you encounter a bank problem, you have a problem. Accountability is slow, often difficult to extract