asset liability management
asset liability managementALM strategiesfinancial risk managementbalance sheet optimizationinterest rate risk
Asset liability management (ALM) is a critical financial process focused on strategically managing an institution's assets and liabilities to maximize net interest income and minimize exposure to various financial risks. It involves balancing the maturity, yield, and repricing characteristics of assets and liabilities, ensuring adequate liquidity, and mitigating interest rate risk to achieve long-term financial stability and optimize the balance sheet.