Analytical approach to asset and liability management through the duration measure and its effect on banks' performance

Message:
Article Type:
Research/Original Article (بدون رتبه معتبر)
Abstract:
Purpose

The purpose of this research is to introduce the function of duration criterion in the management of assets and liabilities and to analyze its impact on the performance of banks, and it refers to a process in which total assets and liabilities are simultaneously and integrated. They can be under control and management.

Methodology

It is an applied research method that is carried out using the results of basic research in order to improve and perfect the behaviors, methods, tools, devices, products, structures and patterns used by human societies, and its purpose is to develop practical knowledge in a specific field. Therefore, this research, while analyzing the overall balance sheet management, asset and debt management, which includes strategic planning and implementation and control processes has led to the development of knowledge through the impact of volume, composition, maturity, interest rate sensitivity, quality and liquidity on bank assets and liabilities.

Findings

The findings show that a proper assessment of a bank's ALM situation requires a correct understanding of the nature of assets and liabilities, customers, the economy and the competitive environment that governs that bank, and its duration criterion can be of great help. To asset and debt management as well as interest rate risk management in the banking system of our country it is also possible to realize its role in the performance of banks due to the importance of managing this sector.

Originality/scientific added value:

 In line with this topic, the current research deals with the analytical approach to the management of assets and liabilities through the duration criterion and its effect on the performance of banks.

Language:
Persian
Published:
Journal of Modern Research in Performance Evaluation, Volume:2 Issue: 2, 2023
Pages:
91 to 101
https://www.magiran.com/p2722990  
سامانه نویسندگان
  • Kaviani، Meysam
    Corresponding Author (1)
    Kaviani, Meysam
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