13 February 2014
asset liability management is applicable to all financial institutions. (in reality every organization in one way or the other)
it managing the timing and quantum mismatch between your assets and liabilities. for eg: if a bank has 3 cr worth liabilities maturing in next three months then it has to ensure that it has assets also which mature for similar quantum which mature in next three months. else it may happen that despite having good business, the may not be able to pay off the liabilities in time...