ASSET AND LIABILITY

MANAGEMENT
• The practice of managing risks that arise due to
mismatches between the assets and liabilities
(debts and assets) of the bank
• Strategic management tool to manage the risks
faced by the bank
•The bank have to face with financial crisis in
recently years.
 ASSET AND LIABILITY
MANAGEMENT
•All risks arise:

 liquidity: liquid funds and asset that the bank hold

but cannot trade
 foreign exchange: unexpected change affect to
trade
 interest rate: affect to investment in stock and
bond
 CREDIT RISK
• Liquidity risk in asset management also affect
to credit risk
• 70% of OCBC asset is loans

• the risk rise in crisis period when client can

withdraw overdraft with their card and don’t has
ability to return
• the client don’t have ability to payback the
loans