Question
Which risk is a bank facing due to the mismatch between
its assets and liabilities tenure?Solution
Liquidity risk refers to the risk of bank arising due to inability to meet all regular financial obligations when they come due without suffering undesirable losses. The banks manage their liquidity risk through effective asset liability management (ALM) for various time periods.
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Akhilesh has a collection of toys, and he tries arranging them in different group sizes. Whenever he groups them in pairs (2s), triplets (3s), sets of f...
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