Risk Management for Changing Interest Rates: Asset-Liability Management and Duration Techniques

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After completing this reading, you should be able to:
- Discuss how asset-liability management strategies can help a bank hedge against interest rate risk.
- Describe interest-sensitive gap management and apply this strategy to maximize a bank’s net interest margin.
- Describe duration gap management and apply this strategy to protect a bank’s net worth.
- Discuss the limitations of interest-sensitive gap management and duration gap management.

[@mphys5370]

Your statement at 13:30, just shows how the world has changed!!!

[@davyou5721]

Great content. I passed the exam years ago and have been in banking for years. But the interest rate risk is still very important and tricky topic. Love your lecture!

[@analystprep]

Congratulations on passing the exam! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@davyou5721]

@@analystprep Absolutely happy to do it.

[@davyou5721]

@@analystprep Done.

[@vaquezartup365]

Thankyou sir for that tutorial👏👏

[@HedgeConnectFX]

Please send links for online duration calculators for loans, liabilites etc. please

[@tamannapancholia8697]

Thank you Professor

[@analystprep]

You're very welcome! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a Google review using this link: g.page/r/CQIlM78xSg01EB0/review

[@Notrolling88]

🍏🍏💚