Asset Liability Management
/ˈæsɛt ˈlaɪəbɪlɪti ˈmænɪdʒmənt/
Definitions
- (n.) The process by which financial institutions coordinate and control assets and liabilities to manage risks related to liquidity, interest rates, and capital adequacy.
The bank's asset liability management strategy reduced its exposure to interest rate fluctuations.
Forms
- asset liability management
Related terms
See also
Commentary
ALM is a critical function in banking and finance law, often governed by regulatory standards ensuring institutional stability and solvency.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.