Asset Liability Management (ALM) is an integral part of Bank Management as well as
important part of the core risk management and so, it is essential to have a structured and
systematic process for manage the Balance Sheet.
SBL has a committee comprising of the senior management of the bank to make important
decisions related to the Balance Sheet of the Bank. The committee typically called the Asset
Liability Committee (ALCO). This Committee meets at least once every month to analysis,
review and formulate strategy to manage the balance sheet.
Asset Liability Management desk of the Standard Bank monitors Market Risk and Liquidity Risk
and at the same time it interprets the market views, competition and the potential target market.
ALM Desk also prepares the liquidity plan as per the Maturity Profile of Assets-Liabilities,
Deposits and Advances, analyzes the different ratios and Factor Sensitivity of interest rates.
The key functions of SBL Asset Liability Management are:
- Diversification and Pricing of Assets and Liabilities
- Monitoring Liquidity and Reserve Management
- Reduction of Fund Cost
- Maximization of Asset Yields
- Centralized Management of Market Risk
- GAP Analysis of Assets and Liabilities
- Search for Alternative Funding and Investment