Question

The following feature is true for the asset liability management in banks:
a. it regulates the banks and its policies
b. the framework requires parliament approval for changing the policies
c. manages the market risk of the banks
d. all statements are true

Answer 1

The answer is c) manages the market risk of the banks.

Asset liability management in banks involves managing the market risk of banks.

One of the core functions of asset liability management is providing solutions for hedging or mitigation of risks associated with assets and liabilities, credit risk management such as credit overlays, monitoring and controlling interest rate risk and liquidity risk management.

Answer 2

ANSWER NO 3 c. manages the market risk of the banks