The Fundamentals of the Bank’s Asset and Liability Management Strategies

Abstract

The article analyzes methodological approaches and key characteristics of the essence of the process of managing the assets and liabilities of banks; the reasons of necessity of complex character of management are determined, which is directed towards balance of basic characteristics of activity of bank, estimation of its market position, formation of an uniform information-analytical and automated management system. The concept of «asset and liability management strategy», which includes a set of principles, tools and methods, is characterized. Components of the mechanism of complex asset and liability management are considered, groups of management methods are provided. Current strategies of asset and liability management of national banks are explored: strategy of integrated management, strategy of combined management, and strategic management using economic-mathematical methods and forecasting. On the example of Ukreximbank, application of strategic management using risk management, models of planning and forecasting, development of crisis scenarios are analyzed.

Keywords

• instruments
• methods
• management models
• balanced strategy
• integrated management
• strategic management