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