ASSET LIABILITY MANAGEMENT IN COMMERCIAL BANKING: THEORETICAL AND PRACTICAL ASPECTS

Liabilities and assets play a crucial role in any business and these are helpful to calculate the net worth of the company. This study focused on asset and liability management policies in a company. However, the concept of the ALM framework and the management procedure is described in this study. Apart from that, the importance of this ALM in the organization is described in this study which is essential to mitigate the possible risks of the company. The entire study highlights the application of the ALM in both theoretical and practical aspects. In addition to that, mitigation strategies that are applied by bankers in reducing the impact of risk have also been discussed in this study. The banking sector of the US has been taken into consideration for determining and generating results within 31 commercial banks. Besides, data analysis has been done in the form of descriptive research and that helped in governing the types of loan lending towards its customers