Which of the following is part of the typical scope of Asset Liability Management (ALM)?
A) Selling distressed assets and investing in bank liabilities trading at distressed levels.
B) Making sure that fixed assets are depreciated according to the applicable tax code.
C) Planning the maturity structure and net funding requirements arising from banking book and trading book transactions.
D) Planning the liability structure and net funding requirements arising from trading book assets carried at amortized cost.

Question

Quizplus · Accepted Answer

Asset Liability Management (ALM) is about managing the risks arising from assets and liabilities on a bank's balance sheet. This includes planning the maturity structure and net funding requirements arising from banking book and trading book transactions. Options A, B, and D are not part of the typical scope of ALM.

Which of the Following Is Part of the Typical Scope