Asset Liability Management & Interest Rate Risk in the Banking Book - Part 1 of 4
The Education of a Value Investor
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Navigating Interest Rates and Banking Stability
This chapter explores the complexities of asset liability management in banking, particularly in relation to interest rate fluctuations. Using case studies, it highlights how leverage ratios and customer loans impact financial stability, emphasizing the importance of cash management and liquid assets. The discussion also addresses the risks stemming from prolonged low interest rates and the management challenges they present.
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