Asset Liability Management (ALM) Fundamentals

Every financial institution must balance its assets and liabilities to survive market fluctuations and economic shifts. Understanding Asset Liability Management (ALM) is crucial for anyone looking to build a career in banking, risk management, or corporate finance. This text-only course guides you through the foundational concepts of ALM, explaining how bank balance sheets are structured and how risks are measured. You will learn to evaluate yield curves, assess liquidity risks, and understand the modern regulatory requirements that keep financial systems stable. What you'll learn: - Understand the fundamental structure of bank balance sheets and the core principles of ALM. - Analyze interest rate risk and the impact of yield curve shifts on net interest income. - Evaluate liquidity risk using modern metrics like the Liquidity Coverage Ratio. - Apply risk mitigation strategies to balance profitability with financial safety. - Navigate modern regulatory frameworks and compliance standards governing bank capital. Starting with essential financial definitions, the course progresses systematically through risk measurement techniques and practical balance sheet scenarios. You will read detailed explanations and work through written exercises designed to reinforce your understanding of risk management strategies. This course is designed for beginners in finance, banking professionals transitioning into risk roles, and students seeking a clear, conceptual foundation in ALM. No advanced mathematical or financial background is required. Start reading today to build a strong foundation in banking risk management.