Banks Should Develop Policies Related to ALM, Including Specific Guidelines

Banks should develop policies related to ALM, including specific guidelines regarding risk/reward tradeoffs. The goal is to manage risks while achieving acceptable returns on investments. In developing these policies bank officials analyze:

A) Cash flows
B) Liabilities
C) Cash flows and liabilities by reviewing historical reports, ratio reports, balance sheet, the income statement, liquidity reports and other available information
D) Liabilities by reviewing historical reports, ratio reports, balance sheet, the income statement, liquidity reports and other available information