Asset and Liability Management

Abstract

The purpose of this chapter is to analyse the approach taken by international banking leadership to the management of the portion of their bank’s balance sheet for which they have responsibility. Separate volumes in this series deal in detail with loan portfolio management (International Lending by Commercial Banks, by T. H. Donaldson) and the management of a bank’s foreign exchange and deposit book (The Money Dealing Function in International Banking, by Nigel Hudson), two activities which are vital components in the overall management of the asset and liability sides of the international balance sheet. Without unduly duplicating the detailed analysis of these volumes, however, this chapter will take an overall view of the entire international balance sheet from the standpoint of senior international management, with the objective of discussing the policies established by management and the issues with which they deal.