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Choosing an effective ALM model

Choosing the suitable asset/liability model for a financial institution depends on numerous factors, such as the bank’s size, the complexity of its operations, risk appetite, regulatory requirements, and business strategy.

An asset/liability model is critical to a financial institution’s success, and financial institutions must take a rigorous approach to ensure they choose a model that is compliant with regulations and tailored to the institution’s specific needs.

This guide will discuss considerations like:

  • Risk profile and tolerance
  • In house or outsourced  model
  • Regulatory compliance
  • And more