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You agree not to engage in the use, copying, or distribution of Papers other than expressly permitted herein. The ALM system has various functions to manage risks such as liquidity risk management, market risk management, trading risk management, funding and capital planning, profit planning and growth projection Kosmidou and Zopounidis, It enables the banks to take business decisions in a more informed framework through considering risks.

It is an integrated approach that covers both types of amounts financial assets and liabilities with the complexities of the financial market.

In present scenario, ALM is important for the banking industry due to deregulation of interest regime. It helps to assess the risks and manage the risks by taking appropriate actions. So, to understand the ALM process and various strategies that are helpful for the banks to manage the market risk, this topic is selected. Along with this, it would be beneficial for me to develop my knowledge regarding the ALM process, functions and practical aspects through case study of HSBC bank.

In this section, theoretical and practical aspects of asset liability management in banking industry will be explored in context of HSBC bank.

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