Due to the inherent risks in the performance of their intermediation functions to the economy

    Bank Management Coursework

    Useful information:
    Due to the inherent risks in the performance of their intermediation functions to the economy, banks adopt different asset-liability management strategies such as asset-management, liability-management and funds-management to protect the value of its net worth from erosion and possible failure.

    Main Question:
    Using a bank of your choice ( from one of these banks: Barclays or Lloyds or HSBC ) , critically examine the strategies of asset-management, liability-management and funds-management with emphasis on the strategy of your choosen bank in order to ascertain the effectiveness of the strategy in ensuring the sustainable growth and profitability of the bank.

    Requirements/Instructions for coursework:
    • Find literature 1960s 1970s
    • Liability-management , give reason & causes that why it did not work
    • Asset management; give reason & causes that why it did not work
    • Crticizing on liability management & assets management & then move to
    • Assets liability Funds management. Use Gap Analysis , Interest Rate Sensitive, and explain how this strategy is effective in ensuring the the sustainable growth and profitability of the bank.
    • Pick figures from bank which demonstrate assets- liability management and then compare it. (For example if a bank have loan for £1m how they will fulfil.)

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