Asset Liability Management

Managing liquidity and margins

In an environment of uncertain economic outlook, rising interest rate-risks and balance sheet complexity, and rising regulatory scrutiny, effective asset-liability management is vital.

Financial institutions are seeking to develop and implement forward-thinking strategies based on an assessment of the current balance sheet. Each institution has a distinct balance sheet and interest-rate risk profile, requiring its unique strategies to meet management objectives.

Funds transfer pricing (FTP) underpins the interest margin and profitability results, and thus, has a significant impact on business unit performance measurement and business behavior.

Solutions from StraitsBridge

Asset liabilityWe assist CFOs and their organizations to achieve effective asset-liability management through a comprehensive offering that includes assessment, solution development and implementation of:

ALM unit roles and responsibilities Develop framework to establish responsibility for the ALM unit to allow seamless working between the Treasury and Chief Financial Officer functions

Interest rate risk Develop framework for interest rate risk management and economic value measurement through implementing best practices in the context of clients’ organizations
Funds transfer pricing (FTP) Assess and establish a robust framework commensurate with market dynamics and the organization’s objectives

Discretionary investment portfolios Develop formal policies and processes for management of the bank’s discretionary investments

Systems Develop the roadmap for the organization to leverage legacy systems to manage different aspects of the balance sheet (liquidity risk, interest rate risk, etc.) and explore new technologies for a more integrated approach

Contact us for more information
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Call us on: +65 6408 0501

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Lessons from the global financial crisis

Recent years have served to highlight the perils of an oversimplified one-size-fits-all strategy formation process to balance-sheet management.

Timely implementation is essential.

Changes in the market or in economic conditions can quickly turn a once compelling strategy into one that is ineffective and may even be counterproductive.

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