Asset-Liability Management to Control the Volatility in Net Interest Income and Economic Value through Gap Analysis of Selected Public and Private Sector Banks
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2016, Vol 6, Issue 1
Abstract
The formation of WTO has resulted in the integration of economies and markets and led to the creation of competitive environment across different markets in the world. Financial Markets as an integral part of the economic system has been subject to phenomenal changes in their structure and functioning, brought in new products, services and exposed to new business propositions. The change in the systems, compelled and inevitable exposure to news avenues of business, also make them exposed to new forms of market risk i.e. interest rate risk and exchange rate risk, transfer risk etc. over and above the conventional risk, credit risk under repressed markets. Due to the changes happening, there is tremendous pressure on the banks and financial institutions to manage their Assets and Liabilities and the associated risk in a scientific way to minimize the volatility in Interest Income and Economic value and to maximize the return. The recent financial crises that shook the entire global financial system is a clear testimony for the poor and inadequate attention given for Assets and Liabilities management. Three public sector banks and three private sector banks were taken for the study. According to the study based 0n facts and figures collected, private sector banks ALM is better than public sector banks.
Authors and Affiliations
Middi Appala Raju
Keywords
Related Articles
- EP ID EP183670
- DOI 10.6007/IJARBSS/v6-i1/1983
- Views 149
- Downloads 0
Angel Investors in Indonesia’s Creative Industry: Profile and Role
This paper intends to provide the most recent reviews regarding the development and funding patterns of angel investment into the creative industries in Indonesia. In particular, this paper explores the role of angel inv...
Determining Factors of Community Safety to Combating Crime in Neighborhood Residential
Gated and guarded communities in Malaysian are commonly identified with a cluster of houses surrounded by fence with controlled access to provide some sense of crime protection for communities. Safety awareness nowadays...
The Effect of Employee Engagement on Quality Work Task Performance with the Moderating role of Employee Relationship
This study tried to inquire the impact of employee engagement on task performance. In this study, moderation role of employee relationship between employee engagement and task performance is also being inquired. This sur...
Application of Lurik Traditional Weaving Fabrics for Furniture Design and Interior Products, as a Strategy to Increase Economic Potential and Competitiveness
Lurik weaving fabric, one of the traditional weaving fabrics in Indonesia is now degrading significantly, can be seen by the decreasing in the number of production sites so that weaving fabrics become scarce, hard to fin...
A Study on Student’s Satisfaction towards On-Campus Foodservice: A Case of UITM Penang Students
This study was conducted to investigate the relationship among three variables, namely price, quality of food and atmosphere with student satisfaction. The inconsistency of service delivery among on-campus cafeteria oper...