What is Asset Liability Management? Asset Liability Management is the ongoing process of formulating, implementing, monitoring, and revising strategies related to assets and liabilities to achieve financial objectives, for a given set of risk tolerances and constraints. Asset Liability Management (ALM) is a part of the overall risk management system in the banks. It is
What is Risk in Banks? The word “Risk” has been derived from the Latin word Rescum. Risk is the potentiality that both the expected and unexpected events may have an adverse impact on the bank‘s capital or earnings. Risk arises due to uncertainty or unpredictability of the future due to changes in internal and external
What is WTO? After the Second World War, many countries planned down to be together to work on ways and means to promote international trade. The result was the signing of (the GATT) General Agreement on Tariffs and Trade by 23 countries in 1947. India was one of the founding members of GATT. GATT was
What is EXIM Policy? In India, economic reforms took place in 1991 with the introduction of the LPG (Liberalization, Privatization, and Globalization) Policy. In order to liberalize imports and boost exports, the Government of India for the first time introduced the Indian EXIM Policy on April I, 1992. In order to bring stability and continuity,
What is International Trade? External trade is also called International Trade. It implies buying and selling of goods or services between two or more countries. For instance, If Mr. A who is a trader from Delhi, sells his goods to Mr. B another trader from China then this is an example of foreign trade or
In India, there was an acute shortage of capital and people lacked initiative and enterprise. Means of transport were undeveloped and as such Industry was in bad condition. Thus there is a need for an institution that removes all the above deficiencies and this led to the emergence of Banks. “A bank is an Institution,
What is Monetary Policy? Monetary policy refers to the use of instruments under the control of the central bank to regulate the availability, cost, and use of money and credit. The goal: achieving specific economic objectives, such as low and stable inflation and promoting growth. The monetary policy of a nation involves the overall set
What is Central Bank? The central bank of any country is the apex institution of its monetary system as well as the financial system because the monetary system is the major constituent of the country’s financial system. As the apex body, the central bank organizes runs, supervises, regulates, and develops the monetary system and thus
What is a Bank? A Banking Company is one which transacts the business of banking which means accepting for the purpose of lending or investment of deposits money from the public repayable on demand or otherwise and withdrawable by cheque, draft, order, or otherwise. Definition of Bank A bank is a firm which collects money
Types of Banks These are the four base of types of banks Basis of Ownership, Basis of Law, Basis of Functions, and Basis of Organization: Types of Banks on Basis of Ownership The bank’s classification on the basis of ownership: Public Sector Banks Public sector banks are those banks that are owned by the government.
