Basic Asset Liability Management Program for BPR
Bank Has intermediation and trust-based function, the Bank needs to manage the portfolio (assets, liabilities, and capital) in a reasonable, healthy and prudent manner so as to increase shareholder value. Managing a portfolio means arranging liabilities (deposits and other debt) according to the needs and movements of interest rates (short-term and long-term) and then selling these funds into productive assets (short-term and long-term), by type, sensitivity to interest rates and especially paying attention liquidity aspects. With the expectation that assets will be of high quality, creating stable profitability, so that the value of capital, in the long run, will increase to support economic expansion and growth. In the case of managing this portfolio, the Bank must not ignore the risks that arise.
