In recent times, even large multinational financial institutions were in a deep liquidity crisis and in dire need of external intervention for survival. The practical importance of ALM and Liquidity Management had been somewhat underestimated. Even managements of large institutions, regulators, and observers saw how well-reputed firms and trusted institutions folded up and were not able to find a way out of the deep liquidity crisis. This resulted in regulators attaching high importance to new measures needed to ensure a sound liquidity management system. Consequently, regulators have enhanced and in some geographies, thoroughly revamped, regulatory oversight on ALM and liquidity management.
This white paper seeks to cover the fundamentals of Asset Liability Management, moves on to emerging industry trends and then goes on to explain the importance of using an analytical framework and how Oracle solutions help address emerging regulatory and management expectations in this space.