100%(1)1 out of 1 people found this document helpful
This preview shows page 1 - 5 out of 22 pages.
Assignment OnDifferent Problems that I faced while dealing with Asset and Liabilityin Exim Bank Prepared forDr. Md. Mosharref HossainAssistant ProfessorBIBM, Dhaka&Mrs. Tahmina RahmanAssistant ProfessorBIBM, DhakaPrepared ByMd. Abu Bakr SiddiqueExim BankCDA Avenue BranchExecutive Summery1
Asset Liability Management is the most important aspect for the Banks to manageBalance Sheet Risk, especially for managing of liquidity risk and profit rate risk.Failure to identify the risks associated with business and failure to take timelymeasures in giving a sense of direction threatens the very existence of the institution.Implementing Asset Liability Management (ALM) function in banks is not only aregulatory requirement in India but also an imperative for strategic bank management.Profit is becoming the key-factor, it has now become imperative for banks to movetowards integrated balance sheet management where components of balance sheet andits different maturity mix will be looked at profit angle of the bank. As I am anemployee of Exim Bank I structured all data based on Exim Bank annual report 2018.To analyze asset and liability I stated some key terms such as Liquidity CoverageRatio (LCR), Net Stable Funding Ratio (NSFR), Leverage Ratio, Advance to DepositRatio (ADR) or Investment to Deposit Ratio (IDR), Commitment and CommitmentLimit. And I also structured this data based on Exim Bank Basell iii report 2018.ALCO committee plays an important role to analyze asset and liability of Bank tomitigate market risk, profit rate risk and other risk and also plays a big role to enhanceprofit and strengthen banks Backbone.When I analyzed Asset liability management of Exim Bank I found few problemsdealing with asset and liability. Here I stated the problems elaborately and also discusshow to overcome the problems.Table of Content2
Introduction41.Key Terms Of Asset Liability Management and Its application in Exim Bank41.1 Liquidity Coverage Ratio (LCR):41.2 Net Stable Funding Ratio (NSFR):51.3 Leverage Ratio:51.4 Advance to Deposit Ratio (ADR) or Investment to Deposit Ratio (IDR)61.5 Commitment61.6 Commitment Limit71.7 Maximum Cumulative Outflow (MCO):72.Components of Asset Liability Management72.1Asset Management 82.2 Liability Management92.3 Risk Management92.4 Capital Management113.Components of Financial Statement114.Asset Liability Management Committee in Exim Bank134.1 Organizational Structure of Asset Liability Management (ALM) Committee134.2 Responsibilities of ALM144.3 Formation of Asset-Liability Committee (ALCO)144.4 Members of ALCO154.5 Functions of ALCO154.6 ALCO Meeting164.7 Special ALCO Meeting164.8 Treasury Department Functions in ALM174.9 ALM Functional Chart175. Problems faced in Dealing of Exim Bank Asset & Liability of Exim Bank185.1 High ID Ratio185.2 Declining Return on Equity185.3 Profit Rate Change Risk195.4 Fixation of Fund Placement Limit with Different Banks205.5 Low Cost and No Cost Deposit205.6 Risk of Industrial Large Investment215.7 Profit on Overdue Investment