Question

The Asset Liability Management (AL

  • M Statement is to be prepared by every bank and is a regulatory requirement. It shows the maturity time-wise break-up of the assets and liabilities of a bank. Like the assets and liabilities are categorized into 1-14 days time bucket, 15-30 days time bucket and so on. It helps in analyzing the liquidity position of the bank. The bank can use this statement for which of the following purposes:
A Efficient allocation of capital
B Suitable pricing for the bank’s assets and liabilities
C Strategic management of interest rate risk
D A and B
E All of the above
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